taper. the economy doesn t run too hot. they signaled as much earlier this month. but at this point the economy is very strong and inflationary pressures are high. it is therefore appropriate, in my view, to consider wrapping up the taper of our asset purchases, which we actually announced at the november meeting perhaps a few months sooner that means the fed will reduce bond buying faster than planned in march instead of june next year and the fed could raise interest rates next year. what the fed does, folks, has implications for everyone. markets are accustomed to easy money, sending stocks to record highs. this could be a head wind for investors. if the fed tightens too quickly, it could hurt the economy, even cause a recession. higher costs for credit cards, loans, mortgages, cars.
what would a rate hycomine for the average consumer? well, clearly a bit of debate going on inside the fed about its approach to inflation. it does seem that consensus view is they can allow it to run a a higher. while the u.s. economy continues to recover. in terms of a rate hike that might come as soon as june. that s about making sure the economy doesn t run too hot. for the average consumer, an increase in interest rates could mean slightly higher mortgage payments, potentially slightly higher credit card rates, but potentially slightly better returns in the stock market. the dow closed 50 points up yesterday and the nasdaq and the s&p 500 ending the day higher. looking like a mixed picture ahead of the u.s. open. something to watch out for today. a lot of consumers up in arms on the next story. amazon s era of consumer-friendliness may be