Federal Reserve policy makers would like to raise rates in a gradual, stair-step fashion. But they might soon feel the need to get more aggressive.
The Fed on Wednesday raised its range on overnight rates by a quarter of a percentage point, lifting it from near zero for the first time in two years. And the central bank signaled the hikes will just keep coming, with its policy makers projecting the midpoint of its range on rates to hit 1.875%—a forecast that implies quarter-point hikes at each of the Fed’s remaining six meetings this year.
By the end of next year, the projections show rates hitting 2.75%, which would be the highest mark since March 2008.
How much the Fed ultimately raises rates will, of course, depend on how the economy progresses in the years ahead. But the sharp move up in…
