Fed signals possibility of 6 to 7 rate hikes through 2024 as taper talks advance
The Federal Reserve on Wednesday telegraphed it could hike rates six to seven times by the end of 2024, illustrating the central bank’s optimism that the COVID-19 recovery will progress well enough for the Fed to tighten its easy money policies in a few years.
The policy-setting Federal Open Market Committee still held interest rates at near-zero in its updated statement, but said it had advanced talks on paring back its asset purchase program.
“If progress continues broadly as expected, the Committee judges that a moderation in the pace of asset purchases may soon be warranted,” the FOMC statement reads.
The central bank only has two more meetings this year to announce a taper: in early November and in mid-December.
Through the end of 2024, the median FOMC member sees six to seven total rate hikes.
In the last round of projections released in June, the median member of the FOMC saw no rate hikes through the end of 2022 but two rate hikes in 2023.
Reference: Finance.yahoo
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