- 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%.
WSJ — Markets — Interest Rates — Monetary Policy — Inflation — Economy
Time to Get Used to Higher Rates
Interest rates could stay elevated with inflation high, the job market tight and the economy chugging along. Fed policy makers' target range on rates could reach 5.5% to 5.75% this year.