The Federal Reserve has signalled support for three interest rate rises next year following the conclusion of the Federal Open Market Committee’s (FOMC) two-day policy meeting on Wednesday (15 December).
FOMC chose to keep rates low, at between 0 and 0.025%, but hinted at bolder action over the course of 2022 and released a statement yesterday outlining an acceleration of its bond tapering programme. The committee decided that from January it would increase its holdings of Treasury securities by at least $40bn per month and by at least $20bn per month for mortgage-back securities, so that stimulus is removed much sooner than expected. Interest rate hikes are expected to follow soon after the tapering, marking a divergence from the Fed's so-far dovish approach to inflation. When in...
To continue reading this article...
Join Professional Adviser
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence.
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters.
- Make smart business decisions with the latest developments in regulation, investing retirement and protection.
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes.
