Fed Eyes 3 Rate Increases in 2022; Slows Stimulus as Prices Rise

Federal Reserve policymakers on Wednesday said they will cut back on their stimulus more quickly at a moment of rapid inflation and strong economic growth, capping a challenging year with a pronounced policy pivot that could usher in higher interest rates in 2022.

A policy statement released by the central bank detailed a more rapid end to the monthly bond-buying that the Fed has been using throughout the pandemic to keep money chugging through markets and to bolster growth, just as a fresh set of economic projections showed that policymakers expect to raise interest rates three times next year.