Fed expects to raise rates three times next year

To cut bond purchases by $30m

The Federal Reserve has signalled support for three interest rate rises next year following the conclusion of the Federal Open Market Committee’s (FOMC) two-day policy meeting on Wednesday (15 December).

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. Bank of England interest rate decision a 'panic move' overshadowed by Covid uncertainty Interest rate hikes are expected to follow soon after the ta...