Fed Raises Interest Rate for the First Time at the End of 2022

Patrick Harker, president of the Philadelphia Federal Bank, said on Wednesday (29th) that the Federal Reserve (Fed) will soon begin to reduce debt purchases. He supports the Fed as early as November and expects the Fed to be as early as 2022. Start to raise interest rates at the end of the year.

Hacker said that he believes that the Fed will slowly and orderly launch the $120 billion monthly debt reduction plan soon. He supports the launch in November at the earliest. After the plan ends in the middle of next year, the Fed may begin to consider raising the federal funds. interest rate.

He believes that the Fed may not raise interest rates until the end of 2022 or early 2023, depending on the economic situation.

Hacker is not the vote committee of the Federal Open Market Committee (FOMC) this year, but he will serve as the alternate vote committee of the FOMC next year.

Harker predicts that in 2021, the US GDP growth rate will be about 6.5%, and the inflation rate will be about 4%. In 2022, the GDP growth rate will slow to 3.5%, and inflation is expected to fall by slightly more than 2%.

In response to the differences of opinion between the two parties on the debt ceiling, Huck warned that if Congress has not reached a consensus, it may have a negative impact on the economy in the short term and severely impact economic growth.

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Fed Raises Interest Rate for the First Time at the End of 2022 - /10

Summary

Patrick Harker, president of the Philadelphia Federal Bank, said on Wednesday (29th) that the Federal Reserve (Fed) will soon begin to reduce debt purchases.

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