What's going on?

Fresh data on Tuesday showed that prices of US goods and services rose at their fastest in eight years last month � and now investors are nervous the US central bank will pull the plug on economic support altogether.

What does this mean?

The US government stepped up its aid for American taxpayers last month, bringing the nation�s bank accounts back from the brink with some much-needed stimulus checks. So with more spare cash floating around, it�s no massive surprise that inflation�s on the rise: prices ticked up by a higher-than-expected 0.6% in March from the month before, and 2.6% from a year earlier � exceeding the Federal Reserve�s (the Fed�s) target. Plenty of economists are expecting that figure to hit the 4% mark before long, and if it transforms from one-off spike to spiraling trend, there could be big problems ahead�

Why should I care?

For markets: Fed support isn�t going anywhere.

The Fed�s been propping up the prices of stocks and bonds for more than a decade. So the last thing the central bank wants is a repeat of the �taper tantrum� of 2013, when the slightest hint it�d be reducing its support sent waves of panic through markets. That�s also why it�s now insisting it won�t touch interest rates � the brakes of the economy � until US inflation averages 2% over a sustained period of time, not just a month or two. Those assurances don�t seem to have worked, mind you: the possibility of a taper tantrum topped a Bank of America poll of investors� biggest worries on Tuesday.

The bigger picture: � until it does.

One Fed official did show his hand this week, saying that three-quarters of Americans would need to be vaccinated before the central bank would even think about withdrawing economic support. If nothing else, then, this week�s hold-up of the Johnson & Johnson vaccine could buy inflation-anxious investors a bit more time to safeguard their portfolios.