The Federal Reserve expects to raise interest rates in 2023, an announcement made during the most recent policy meeting. ClareCNN reports.
That's a sharp contrast from the Fed's previous forecast in March, in which the central bank predicted rates would stay near zero for at least the next two years.Some members of the Federal Open Market Committee -- which decides the central bank's policy -- are in favor of raising interest rates next year, the projections show.The central bank also expects stronger growth, with real gross domestic product -- the broadest measure of economic activity -- climbing 7% in 2021, up from 6.
"We don't in any way dismiss the chance that it can work out that this goes on longer than expected, and the risk would be that over time, it does begin to affect inflation expectations," Powell said.If that is the case, the Fed would go back to its toolbox to address the issue, he said.
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