We’re awaiting news from the Federal Reserve about how they see higher prices for consumers and what that means for projections on interest rates in the U.S. economy. Past messaging from Fed Chair Jerome Powell has been very consistent: The Fed won’t raise rates until it sees “consistent strength in the underlying economy,” says Susan Schmidt, head of U.S. equities at Aviva Investors. Also, the Fed has been consistent in saying price increases are transitory as the economy continues to reopen. We’ll see if Powell and the Fed stick to that after meeting today, “but the market isn’t really expecting an increase in interest rates at this time,” Schmidt says. “They’re still thinking that that’s going to happen, possibly in 2022, and maybe in 2023.”
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