likely also raise interest rates, signaling as many as three interest rate hikes early next year, all to respond to inflation. cnn business reporter live in new york, matt egan. matt, tell us how quickly consumers see this. i mean, the bond buying is something they don t necessarily see right away, but interest rates they will, mortgages, credit cards, you name it. reporter: jim and erica, absolutely. it does take some time to filter through economy, but this is a major policy shift by the federal reserve. we know that high inflation is really the biggest financial headache facing americans right now. the fed is finally showing that it s serious about trying to tame inflation after months of insisting that these price spikes were just a temporary issue. the fed is finally acknowledging reality, which is that inflation is on fire and someone s got to put it out. so the fed is acting like the firefighter here. they re stepping in to cool things off by wrapping up that bond-buying stimu
at all, so those are things on the supply side or the monetary policy has been highly accommodating, well past the beginning of the recovery of the united states at $120 billion every month of new high powered money, the new reserve being put into the banking system, a very aggressive policy that carried forward. and that s nowjust beginning to taper. even as they go through march they are going to be in an expansionary monetary policy position as the continue bond buying, just at a slower pace, so there is no interest rate increase anticipated until after that, he made it clear today. so i think inflation is going to be here for a while and they are going to be having to dealing with this through at least 2022 and 2023 as i think their actions today suggested they realised. ., , actions today suggested they realised. . , .,