Finally, the Federal Reserve is taking inflation seriously.
Policymakers announced last week that they expect to raise interest rates at least three times next year. This is a major change from September’s meeting, when a majority of the officials didn’t expect to raise rates until at least 2023.
The Fed also announced plans to accelerate the end of the bond-buying programs that have been in place since the economy shut down last year. Stocks rallied on the news at first.
Despite the sharp changes, real interest rates are likely to be negative throughout 2022. Real interest rates are…
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