Fed Plans to Raise Rates in Q3 of 2022 even as Hike Risks Loom

The Index Today — The U.S. Federal Reserve revealed plans on Thursday to lift rates during Q3 of 2022 due to increased inflation, which is earlier than what had been expected. However, economists in a poll conducted by Reuters also expressed concerns of a premature hike that will occur as a result.

The poll also anticipates the Federal Reserve to increase the rates by 25 basis points to 0.25-0.50% in the third quarter of 2022. Additional hikes will also be instituted in Q4 of 2022, as well as in the first and second quarters of 2023.

According to Jerome Powell, the Federal Reserve Chief, this shift to Q3 of 2022 from Q4 will be taken up by the Central Bank during their December meetings as they debate to conclude their $120 billion monthly bond purchases a few months before the original end date of mid-2022.

©Photo: Melissa Lyttle for The New York Times