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Fed Doubles Taper, Signals Three 2022 Hikes in Inflation Pivot

  • Flags omicron variant as risk to the economic outlook
  • Supply imbalances, reopening contributed to elevated inflation
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Powell Says Fed to Double Taper Pace in Inflation Pivot
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Federal Reserve officials intensified their battle against the hottest inflation in a generation by shifting to end their asset-buying program earlier and signaling they favor raising interest rates in 2022 at a faster pace than expected.

Heralding one of the most hawkish policy pivots in years, the central bank said Wednesday it will double the pace at which it’s scaling back purchases of Treasuries and mortgage-backed securities to $30 billion a month, putting it on track to conclude the program in early 2022, rather than mid-year as initially planned.