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The Federal Reserve’s September 21 and 22 Federal Open Market Committee (FOMC) meeting is expected to tee up a November announcement of a taper (slower purchases) of their quantitative easing programs. The FOMC will update their Summary of Economic Projections a.k.a. dot plot at the meeting, too. Financial markets will closely read the pace of rate hikes implied by the dot plot. The last dot plot released in June 2021 showed the median dot thought the Fed should wait until 2023 to raise the Fed Funds rate and make two quarter percentage point rate hikes by the end of that year if the economy performed as expected. Financial markets currently price in a considerably earlier start of rate hikes—a first hike is priced in for mid-2022.
