The Federal Reserve on Wednesday sharply ramped up its expectations for economic growth but indicated that there are no expected interest rate hikes through 2023 despite an improving outlook and a turn this year to higher inflation. As widely expected, the policymaking Federal Open Market Committee also voted to keep short-term borrowing rates steady near zero, while continuing an asset purchase program in which the central bank buys at least $120 billion of bonds a month. The key changes came in how central bankers view the economic road ahead and what impact that could have on policy. “Following a moderation in the pace of the recovery, indicators of economic activity and employment have turned up recently, although the sectors most adversely affected by the pandemic remain weak. Inflation continues to run below 2 percent,” the committee said in its post-meeting statement.
Source: Economy
