Federal Reserve moves up forecast for interest rate hikes

The Federal Reserve indicated Wednesday it may raise interest rates sooner than previously anticipated as the United States comes out of the coronavirus pandemic. But Federal Reserve Chairman Jerome Powell played down expectations, claiming discussion of the change at the Federal Reserve is highly premature.

The central bank forecasts it would raise interest rates twice by the end of 2023 after previously estimating there would be no interest rate hike until 2024. "These projections do not represent a committee decision or plan and no one knows with any certainty where the economy will be a couple of years from now," said Powell. "More important than any forecast is the fact that whenever liftoff comes, policy will remain highly accommodative."