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Future US Rate Hikes Need Not Be Dramatic
The other wild card that was recently introduced into that already-turbulent scenario is the specter of the Federal Reserve potentially raising interest rates sooner than expected. Entering this year, conventional wisdom held that the Fed was perhaps two or three years away from a single rate increase, but that outlook is changing as the U.S. economy rebounds from the coronavirus slump. “Some Federal Reserve officials expect the economy to reach full employment by the end of next year, which would set the stage for the first increase in the target range for the fed funds rate soon thereafter,” says Moody’s ... (full story)