It opens the door to interest rate hikes.
The U.S. economy will need to keep improving in order for rates to go up.
Two words: interest rates. On stuff like mortgages. Business loans. Keeping them low keeps capital flowing in this pandemic economy.
Those bonds have helped keep lots of money flowing into the economy. But now, the Fed is signaling that its going to taper off its monthly purchases.
We don't know when the Federal Reserve will trim its bond-buying policies that boost the economy, but we do know that tapering that program will be intricate work.