The Fed is anticipating interest rate hikes in 2022, according to projections released Dec. 15.
Concluding its two-day policy meeting, the Fed announced plans to phase out of its large-scale bond-buying program faster than expected. Ending the bond purchases earlier would give the Fed more flexibility to raise interest rates sooner to deter rising inflation.
The Fed has kept interest rates near zero throughout the COVID-19 pandemic to prop up the economy. Now, most Fed committee members expect interest rates to increase by three-quarters of a percent — or more — in 2022.
Members say they expect inflation to be 2.6% at the end of next year, up from the 2.2% projection in September. Read more.