In policy shift, Fed projects 3 interest rate hikes in 2022
WASHINGTON — With inflation now running at its fastest pace in nearly 40 years and showing no signs of slowing down, the Federal Reserve on Wednesday abandoned its wait-and-see strategy and indicated that it could begin stepping on the economic brakes soon.
Specifically, the central bank signaled it could start raising interest rates as early as next spring as it announced a speedier shutdown of a bond-buying stimulus program that it implemented to counteract the economic damage from the COVID-19 pandemic. Most Fed officials now see at least three rate hikes in 2022.
Wednesday’s announcement, following policymakers’ last scheduled meeting of the year, marked a big pivot for Fed Chair Jerome H. Powell. He and his colleagues had put more emphasis on maximizing employment, rather than the Fed’s other mandate, price stability, as they sought to achieve broad-based economic and job growth. Now the weight has
