Fed Seen Raising to 4% in 2022 And Signaling Higher for Longer
Federal Reserve officials will signal a more hawkish stance next week, with interest rates reaching 4% by December and staying high through 2023, economists surveyed by Bloomberg said.
The Federal Open Market Committee will raise rates by 75 basis points for a third consecutive meeting when policy makers announce their decision at 2 p.m. in Washington Wednesday, the survey found.
That would lift the target range for their policy benchmark to 3% to 3.25%. Fed forecasts released at the meeting are expected to show the upper bound of the range at 4% by year-end and edging higher next year, before cuts in 2024 take it back to 3.6%.
Such a shift represents a big step up from Fed forecasts in June, reflecting a tougher fight against inflation after August core consumer-price growth came in hotter than expected. The survey of 45 economists was conducted Sept. 9-14.