Fed Keeps Rates, Bond Purchases Steady; Signals Hikes in 2023

• The Federal Reserve kept interest rates unchanged in the range of 0% to 0.25% and monthly bond buying steady at $120 billion, but signaled that two rate hikes could be on the cards by the end of 2023 amid forecast for a faster economic growth and inflation. 
• The Fed has come under pressure to signal a willingness to begin taking its foot off the stimulus accelerator at a time when inflation is running at its hottest rate in years. The central bank appears to be taking note, bringing forward its forecasts for rate hikes to 2023. 
• The Fed hiked its interest-rate outlook in 2023 to 0.6% from previous projections of 0.1% in March, signaling two 0.25% rate hikes in 2023, the Fed’s Summary of Economic Projections showed. 
• The economy is expected to grow by 7.0% in 2021, up from previous estimates of 6.5%, while the forecast for 3.3% growth in 2022 was maintained. For 2023, the Fed sees growth of 2.4%, up from 2.2% previously. 
• Despite acknowledging the faster pace of growth and inflation, the central bank continues to bet that the factors boosting price pressures -- including the reopening and weaker comparison last year, or base effects -- will be fleeting, and ultimately result in inflation averaging around its 2% target.

(Source: Investing.com)