Current projections say there will be two hikes in the latter part of 2022.
OK, so when does the Federal Reserve take its next big step—pumping up short-term rates? The futures market projects that two increases in the federal funds rate, which governs the short end of the yield curve, will come next year, betting it will happen at year-end 2022. Really?
Lifting the federal funds rate, now in a 0% to 0.25% band, may arrive sooner than the market expects, according to some Wall Street observers. The central bank’s first step came last week, when it announced the phase-out of its bond-buying program, affecting longer-term fixed-income securities. That process will be completed around June.
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