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Market Update

Why the Fed Changed Its Tune on Rates

A strong job market and persistent inflation pressures mean that higher rates will be here sooner.

Federal Reserve officials are closing out 2021 with a hard pivot toward a more-aggressive pace of interest-rate increases next year in response to a strengthening job market and unexpectedly stubborn inflation pressures.

Investors should now expect three interest-rate increases from the Federal Reserve by the end of 2022--possibly starting as soon as March--even as some sources of inflation begin to cool off by later in the year.