Fed rate hike could come as soon as 2022

The Federal Reserve has moved up the timetable for a potential rate hike to 2022, according to an Associated Press report. The acceleration from the expected rate increase in 2023 is in response to accelerated economic growth and inflation. Federal Reserve Chair Jerome Powell indicated that the Fed plans to announce as early as November that it will start withdrawing the extraordinary support it released last year after COVID-19’s paralyzing effects on the economy. Powell says that if the job market continues to improve, the Fed would likely begin slowing the pace of its monthly bond purchases intended to lower longer-term loan rates.