It also underscores one of their biggest challenges in providing guidance as the pandemic lingers: How to talk about what they are going to do in the future when volatile economic data is causing them to constantly revise their outlook.
WASHINGTON: Federal Reserve (Fed) officials head toward their January meeting with only tentative conviction that inflation will finish the year below 3% – as they predict – and are already saying they may need to raise interest rates faster than expected.
A chorus of officials this month floated raising rates in March and the potential need to hike four and even five times this year. That’s just a few weeks after they forecast three 2022 hikes and the shift will colour the debate at their Jan 25-26 policy gathering.
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