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Essentials of Monetary Policy

Federal Reserve (Fed). The Fed Doubles the Taper Pace and Signals Key Rate Hikes in 2022

December 15, 2021
Francis Généreux
Principal Economist

It’s been clear for a while that Fed officials would react more vigorously to the latest news regarding inflation, which recently proved to be much higher (5.0% in October according to the consumption expenditure deflator) than forecast in September (4.2%) by members of the monetary policy committee for the last quarter of 2021. The forecast now stands at 5.3%.