signals rate hike "soon" to fight inflation

At the Federal Reserve, we are strongly committed to achieving the monetary policy goals that Congress has given us maximum employment and price stability today. In support of these goals, the Federal Open Market Committee kept its policy interest rate near zero and stated its expectation that an increase in this rate would soon be appropriate. The Committee also agreed to continue reducing its net asset purchases on the schedule we announced in December, bringing them to an end in early March. Economic activity expanded at a robust pace last year, reflecting progress on vaccinations and the reopening of the economy, fiscal and monetary policy support, and the healthy financial positions of households and businesses. Indeed, the economy has shown great strength and resilience in the face of the ongoing

The recent sharp rise in Kovac cases associated with the Amicrun variant will surely weigh on economic growth this quarter. High frequency indicators point to reduced spending in covet sensitive sectors such as travel and restaurants, and activity more broadly may also be affected, as many workers are unable to report for work because of illness, quarantines, or caregiving needs. Fortunately, health experts are finding that the Amicran variant has not been as virulent as previous strains of the virus, and they expect that cases will drop off rapidly. If the wave passes, the economic effects should as well, and we would see a return to strong growth.