As expected, The Federal Reserve has decided that - Interest rates will remain close to zero through 2023 and plan to continue to purchase $120 billion monthly of Treasury securities and mortgage-related assets! This means the Fed does not intend to taper its monthly asset purchases in the near future, which is what officials would plan to do before they consider raising interest rates.
Although the consensus is for rates to remain at zero through 2023, there are more Fed members now that do think the Fed should hike rates before then. Four members see the Fed hiking rates in 2022, while seven see them hiking rates in 2023.
The Fed projects that we will see inflation slowing down to 2% next year, before increasing to 2.1% in 2023. The same time as unemployment decreases.
Federal Reserve Chairman Jerome Powell stated that "the economic recovery remains far from complete."
With all the talk going on about the Federal Reserve committee, let me remind you of a couple of things about the Fed:
The Fed does not control mortgage rates.
The Fed sets the costs for overnight loans from bank to bank or from the Fed to member banks, called the Fed Funds and Discount Rates.
When the Fed cuts its rates, mortgage rates can actually rise. (Low Fed rates are good for stocks. Investors turn there instead of mortgage bonds, and rates rise.)