Senior FED Officials Signals First Rates Hike to Come in March

Policymakers at Federal Reserves this week signaled that the FED will start raising interest rates in March to combat inflation and initiate tightening of the monetary policy.

Before the next rate setting meeting, U.S., Fed Governor Lael Brainard on Thursday became the latest and most senior central banker to echo pandemic era zero-interest rates to end shortly.

The Fed “has projected several rate hikes over the course of the year,” Brainard told the Senate Banking Committee.

“We will be in a position to do that … as soon as our purchases are terminated,” she said, referring to a separate Fed asset purchase program that is due to end in March, opening the door to a possible rate increase at the Fed’s March 15-16 policy meeting.