Fed seen being cautious in rate path

Balancing act: Signage for a home sold in Pennsylvania is seen in this picture taken recently. Surging housing and rental prices might cause the Fed to let mortgage-backed securities run off faster than Treasuries. — AP

ATLANTA: United States Federal Reserve (Fed) officials this week will raise interest rates for the first time since 2018 and signal a faster pace of hikes in 2022, according to economists surveyed by Bloomberg, though they may be cautious amid uncertainty due to Russia’s invasion of Ukraine.

While markets pricing interest rates see as many as six or seven hikes this year spread out during the Federal Open Market Committee’s (FOMC) remaining seven meetings, economists say the Fed’s quarterly forecasts in the “dot plot” will show around four hikes for 2022 and they predict the Fed will follow through with five increases with no half-point moves.