Fed could raise interest rates earlier than expected

Fed could raise interest rates earlier than expected
# 14 June 2021 16:28 (UTC +04:00)

The Federal Reserve could decide to raise interest rates sooner than anticipated, the Wall Street Journal reported on Monday, APA reports.

According to the paper, the new projections that are due on Wednesday, following the Federal Open Market Committee meeting, could show more officials expecting an interest rates increase in 2022 or 2023, as indicators of surging inflation arrived quicker than anticipated. Additionally, the forecast is also likely to showcase a faster economic growth this year than the 6.5% that the Fed predicted in March.

Finally, when it comes to reducing the central bank's monthly purchase of Treasury and mortgage bonds, the report predicts that tapering will begin around the end of this year or the beginning, noting that in previous instances of the Fed tailing off their bond-purchase programs, they let the tapering process end before raising rates.

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