Will the party last without the punchbowl?

The party in the markets has remained in full swing while the Fed has emptied its punchbowl slowly. This year, though, the US central bank is likely to drain it more quickly. And in some other major economies, monetary policy is also likely to be tightened further, or at least become less expansionary. Admittedly, the music may not stop until the second half of 2018, when significantly higher interest rates start to weigh on the US economy just as fiscal stimulus is fading. But once growth in the US starts to slow, risky assets there are likely to come under pressure. That would probably be contagious, even if growth remains healthy elsewhere.