FOMC also decided to start tapering its holdings of Treasuries and mortgage-backed securities by $47.5 billion per month.

Minutes from the FOMC's March meeting indicate the Fed is "scrambling to get policy back to neutral as quickly as they can. ... to get inflation back under control."

Fed ramps up inflation fight in an economy that's tough enough to cope.

It's not the 1970s, but Biden and Congress face a significant challenge as prices are expected to rise at more than 6% annually.

The Fed will likely curtail bond-buying soon in response to inflation, and investors increasingly expect benchmark interest rates to rise as early as mid next year.

Fed bond-buying program might begin tapering in November and end next year, with rate hikes likely to start thereafter.

Complex administration of the tax deferral, and the prospect of having to double withholding from employee paychecks early next year, mean no major private businesses have taken advantage of the holiday.

The Federal Reserve's Beige Book shows 38 million job losses in two months and an annualized 4.8% GDP decline Q1, with the prospect of a much steeper drop this quarter.