The US Federal Reserve has signaled it is taking inflation seriously by reducing its monthly spending on government bonds a twice the rate outlined at the beginning of November as well as increasing the number of projected rate increases for 2022 from one to three.
The news comes as inflation registered heights not seen since the 1980s with a 6.8% year-over-year rise in prices in November.
According to central tendency projections by the Federal Reserve Board members inflation will fall to between 2.2% to 3% in 2022 and 2.1% to 2.5% in 2023 indicating that inflation worries increased slightly since September.
Central tendency GDP growth projections remained unchanged between 3.6% and 4.5% in 2022 and between 2% and 2.5% in 2023.
Markets reacted indifferently to the news of less Fed support.