The Fed may raise rates sooner than expected – expert
According to the FOMC forecast in March, U.S. interest rates
U.S. interest rates will not rise for another 2 years, until the end of 2023.
year. But according to Adam Posen, a former economist at a number of
major banks (such as Deutche Bank, Bundesbank and the Bank of England),
The Fed would have to raise them much earlier-perhaps as early as
The Fed will have to raise them much earlier, perhaps as early as the end of 2022 or the beginning of 2023. His opinion leads agency Bloomberg.
The U.S. economy is showing signs of recovery, but
The Fed is in no hurry to raise rates. As has repeatedly stated
The regulator has repeatedly said it intends to refrain from such a step before reaching the
inflation target (2%) and maximum employment. In Posen's view
Posen, a rise in inflation could happen quite quickly-as early as this year or next year.
This year or next year, it might surpass the target and
this year or next year. There is a good reason to assume this scenario,
The expert believes: this will contribute to the pent-up demand for
of medical care after the pandemic subsides and disruptions in global supplies.