So the fed might start to taper when unemployment reaches 6.5% etc. I am wondering, what happens when the tapering is done, and the Fed needs to start selling those bonds back into the mkt....is THAT when the inflation spike could begin? Presumably the Fed takes a loss on this, but is the strategy to gradually remove the money from the mkt and so avoid the inflation spike?
I am not an economists armpit, just an interested onlooker.....
