Fed to End Tapering Earlier, Signals Three Hikes in 2022

The video discusses the Federal Reserve's decision to increase the pace of tapering to $30 billion a month, with $20 billion in Treasurys and $10 billion in mortgages. The Fed has raised its inflation forecast and removed the term 'transitory' from its statements. They anticipate three rate hikes in 2022, three more in 2023, and nearly three in 2024. The Fed highlights ongoing supply and demand imbalances due to the pandemic and notes that sectors affected by COVID-19 are improving but still impacted. The committee expects to maintain the target range until labor market conditions align with maximum employment. Progress in vaccinations and easing supply constraints are expected to boost economic activity, but risks from new virus variants remain.

What is the anticipated inflation rate for PCE in 2022 according to the text?

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How many rate moves does the dot plot anticipate for the next year?

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What factors are contributing to elevated levels of inflation as mentioned in the text?

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What conditions does the committee expect to reach maximum employment?

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What risks to the economic outlook are mentioned in the text?

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