Earlier today, U.S. Federal Reserve Chairman Jerome Powell, along with the rest of the FOMC Committee, kept interest rates unchanged but did signal that a rate hike may be coming in March. This rate hike would be the first rate hike since Q4 2018. However, the Federal Reserve did not specify in its main statement when it might begin to reduce its bond holdings only that it would start shrinking its balance sheet after the raising of rates had been completed. Finally, the Committee said that high inflation has imposed significant hardship on people, especially those struggling with the higher cost of essentials such as food and housing.
Source: WSJ