The Federal Reserve signaled today that it will reduce its monthly bond purchases and look to raise rates three times in 2022. They will also look to three rate hikes in 2023 as well.
What does this mean? Rates have been slowly creeping up in the past two months. We will definitely see an increase by April 2022. The Fed has been signaling for some time that this approach is coming, so some of the increase is already baked in right now. We will still see an increase. For specifics on our projections, please make sure to watch our video https://youtu.be/h4NNBlXIl18 .
We definitely are concerned with the aggressive approach of raising rates three times in 2022. The Fed did say that they will continue to monitor. If the economy continues to improve, more people actually go back to work, and the Covid-19 variants are not as strong, we will definitely see multiple rate hikes in one year.
Let us know what you think too.
Here are a few links to some articles:
https://www.cnn.com/2021/12/15/economy/federal-reserve-powell-inflation-taper/index.html https://www.cnbc.com/2021/12/15/us-bonds-treasury-yields-rise-ahead-of-fed-policy-verdict.html
