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Polo Jr
12/17/21, December 17, 2021 WIB
Last Updated 2021-12-18T07:45:50Z
economyfinancestock trading

How the USA is going to raise its interest rates next year and how many times

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the united states had earlier said that they won't be any increase in its interest rates in any foreseeable future but as the inflation, they were so keen to say it won't increase. at the time the FED(USA central bank) said this the inflation rates were in a steady zone around 1.7% and we all know at this point that the USA maintains a 2% inflation rate policy. 

Now the inflation is at 6.8% which came to the contrary of what the FED had promised. Now the same FED has come out this week to announce that to curb the increasing inflation there would be a series of interest rates increase in 2022. this would be to return the inflation to pre-pandemic levels by 2024. 

the FED said to increase the rate twice in next year sitting opportunity for long term investors. by long-term investors, I mean bond investors and related bond instruments. when interest rates have increased the price of the bond increases as the expected return on it increases so to those with their money please buy USA federal bonds which usually start at $5000...if you buy them now you get a chance to get an increase in the price of your bonds.

also, the FED is cutting back on its bond-buying programs to limit the money In circulation. I will write an article about bonds so make more sense of them.