National + Finance | June 17, 2021

Fed Holds Line on Interest Rates but Increases Could Come in 2023

The Federal Reserve said Wednesday it would maintain the target range for the federal funds rate at 0 to 0.25%, but moved up the timeline for possible rate increases. The central bank’s latest quarterly economic projections anticipate at least one rate increase by the end of 2023, and possibly two.

In the meantime, the Fed said it’s appropriate to maintain the near-zero rate environment until labor market conditions have reached levels consistent with the Federal Open Market Committee’s assessments of maximum employment, with inflation rising to 2% and “on track to moderately exceed 2% for some time.”

Additionally, the Fed will continue increasing its holdings of Treasury securities by at least $80 billion per month and of agency MBS by at least $40 billion per month “until substantial further progress has been made toward the Committee’s maximum employment and price stability goals.”

Connect

Inside The Story

Federal Reserve

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

Order Reprints