- Inflation is high and the job market is tight.
- Fed Chairman Jerome Powell suggested that interest rates could be higher than previously anticipated.
- The Fed's December projections suggested that the midpoint of their target range on rates would finish out this year at 5.25%.
- Investors expect Fed policy makers to raise their target on rates to a range of 5.5% to 5.75% this year.
- The Fed's assessment of where rates will eventually end up is 2.5%.
Time to Get Used to Higher Rates
Interest rates could stay elevated in a way not seen since before the financial crisis
Justin Lahart
