The Federal Reserve signaled Wednesday that it plans to begin raising its benchmark interest rate as soon as March.
Inflation is up 7% in the past year, the biggest jump in nearly 40 years, as the pandemic helps push prices up on everything from gas to groceries.
A separate potential source of higher rates is the Fed's plans for its bond holdings, which are at a record high of nearly $9 trillion. The bond purchases, which the Fed financed by creating money, have been intended to reduce longer-term interest rates to spur borrowing and spending. Many investors also saw the bond buying as helping fuel stock market gains by pouring cash into the financial system.
Some analysts have said they aren't sure how big the impact on interest rates will be or how much the Fed will rely on reducing its balance sheet to affect interest rates.
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