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Fed to Hike Rates in 2023 But Dots Won’t Show It, Economists Say

  • Survey finds Fed forecasts will keep projecting easy policy
  • Faster vaccinations and stimulus are improving U.S. outlook
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A strong recovery from the Covid-19 recession is likely to prompt Federal Reserve Chair Jerome Powell and his colleagues to lift interest rates in 2023, but that isn’t going to show up in their forecasts this week, a survey showed.

Economists surveyed by Bloomberg News see two quarter-point hikes in 2023. But they also expect the U.S. central bank’s own forecast, released at the same time as its policy statement at 2 p.m. in Washington on Wednesday, will show the median Fed official projecting rates staying on hold near zero throughout that year.