Fed says multiple rate hikes are coming in 2022

Delta variant, headache for the Federal Reserve 1:02

(CNN) - 

The Federal Reserve will conclude its pandemic-era stimulus program faster and expects to raise interest rates in 2022 more than projected in September.

The US central bank, which first announced in November that it was "reducing" its monthly asset purchases, said Wednesday it will do so at a faster pace.

Starting in January, the Fed will buy $ 20 billion less in Treasury securities and $ 10 billion less in mortgage-backed securities.

That leaves the monthly shopping list at $ 40 billion for Treasury securities and $ 20 billion for mortgage-backed securities.

This is consistent with what Federal Reserve Chairman Jerome Powell told Congress in late November.

"The Committee believes that it will probably be appropriate to make similar reductions in the pace of net asset purchases each month, but is prepared to adjust the pace of purchases if warranted by changes in the economic outlook," said Wednesday's statement. reads the statement on Wednesday.

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The December meeting also included a summary of the economic projections, the so-called "dot plot."

Fed officials now predict that the central bank's benchmark interest rate will rise to 0.9% in 2022, above the September expectation of 0.3%, signaling additional interest increases.

Market expectations for an interest rate hike are picking up in May next year, according to the CME FedWatch tool.

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United States Federal Reserve