The majority of Fed members forecast three interest rate hikes in 2022 to fight inflation

A child passes by the Marriner S. Eccles Federal Reserve Board Building.

The majority of the Federal Reserve sees three interest rate hikes in 2022, according to the central bank.

The Federal Open Market Committee members expect three rate raises next year. One member expects a hike in 2022.

In September, half of the Fed members saw at least one hike.

The committee predicts where interest rates will go in the short, medium and long term. The projections are represented in a dot plot.
The dots remained the same from the meeting.

The Summary of Economic Projections was released by the Fed.

The central bank expects the real gross domestic product to grow 5.5% in 2021, down from its previous estimate of 5.9% growth.

The GDP projections were raised by the Fed. The central bank has lowered its GDP projections for the year to a growth of 2%.

The Federal Reserve is the source.

The Fed raised its inflation forecast for the next three years. The central bank hiked its PCE inflation estimate for the year to 2.6%. The Fed raised its estimate for 2023.

The core PCE inflation expectations increased to 4.4% in 2021. The forecast for core PCE for the year of 2022 is 2.7% and for the year of 2023 is 2.3%. The estimates were up from September.

The unemployment rate will be 4.3% this year, lower than the previous estimate of 4.8%.

The governing body said it will reduce its monthly bond purchases on Wednesday. The Fed will be buying $60 billion of bonds each month in January, half the level prior to the November taper and $30 billion less than in December.

Benchmark interest rates were not changed on Wednesday.