The days of rock-bottom rates are nearly over.
The central bank will aggressively unwind last year’s bond buying sooner than originally planned after recent reports on inflation continued to show a sharp rise in prices.
While the Federal Reserve said Wednesday that interest rates will stay near zero for now, the quick tapering of bond purchases is seen as the first step on the way to interest-rate hikes next year.
“For consumers, the writing is on the wall that interest rates are likely to start climbing in 2022,” said Greg McBride, chief financial analyst at Bankrate.com.
The federal funds rate, which is set by the central bank, is the interest rate at which banks borrow and lend to one…