Fed expects to raise rates three times next year

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...