, Columnist
The Next Fed Meeting Will Offer More Surprises
Beyond the taper, the longer-term outlook for interest rates might come as a shock to markets.
Box of surprises.
Photographer: Samuel Corum/BloombergThis article is for subscribers only.
The U.S. Federal Reserve has bitten the bullet: At their policy-making meeting next week, in recognition of persistent high inflation, officials will announce a speedier tapering of asset purchases that have been supporting economic growth. The aim is now to complete the program in time to be able to start raising short-term interest rates as soon as March should that prove necessary.
But the taper isn’t all that will be on the agenda at next week’s meeting. Fed officials are also likely to signal a faster and larger tightening of monetary policy over the next three years — to an extent that markets haven’t yet anticipated.