Federal Reserve officials signaled on Wednesday that they expected to raise interest rates from rock bottom sooner than they had previously forecast and that they were taking baby steps toward reducing their vast bond purchases — tweaks that, together, demonstrated their increasing confidence that the economy would rebound robustly from the pandemic.
Fed policymakers expect to make two interest rate increases by the end of 2023, the central bank’s updated summary of economic projections showed Wednesday. Previously, more than half of officials had anticipated that rates would stay near zero, where they have been since March 2020, into at least 2024. Officials now see rates rising to 0.6 percent by the end of 2023, up from 0.1 percent.
What this shows us is that the economy is beginning to show signs of improvement, and eventually we will start to see a gradual rise in interest rates in the next few years to come.
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