The Federal Reserve said Wednesday it will keep its benchmark interest rate near zero despite signs the economic recovery is well underway.
But it’s clear rates won’t stay near rock-bottom forever. Recent data showing higher consumer prices and lower unemployment will pave the way for unwinding last year’s bond buying and near-zero interest rates. Fed officials did indicate that rate hikes could come as soon as 2023, after saying in March that it saw no increases until at least 2024.
The Federal Open Market Committee raised its inflation expectation to 3.4%, although the central bank said it expects to “maintain an accommodative stance of monetary policy” for now.
“Being 7.8 million jobs…