Posen Sees Fed Compelled to Raise Rates Earlier Than Forecast

The Federal Reserve will feel compelled to increase interest rates sooner than officials currently project, even with their new wait-and-see approach to inflation, said former Bank of England policy maker Adam Posen.

“The Fed will have to raise rates in December ‘22, January ‘23,” Posen, who’s president of the Peterson Institute for International Economics in Washington, said in a media call Thursday. “They will feel they have to.”