Fed plans to raise rates as soon as March to cool inflation

The Federal Reserve signaled Wednesday, it plans to begin raising its benchmark interest rate as soon as March. | Photo: MGN

CHRISTOPHER RUGABER AP Economics Writer
Created: January 26, 2022 01:45 PM

WASHINGTON (AP) - The Federal Reserve signaled Wednesday that it plans to begin raising its benchmark interest rate as soon as March, a key step in reversing its pandemic-era low-rate policies that have fueled hiring and growth but also escalated inflation.

With high inflation squeezing consumers and businesses and unemployment falling steadily, the Fed also said it would phase out its monthly bond purchases, which have been intended to lower longer-term rates, in March.