Fed could raise rates as soon as Q3 2022, Bostic says

BY Reuters | ECONOMIC | 10/21/21 03:40 PM EDT

Oct 21 (Reuters) - Supply chain disruptions and labor market constraints, coupled with strong consumer demand, could keep inflation high into 2022, and the U.S. central bank may need to raise rates in the second half of the year, Atlanta Federal Reserve Bank President Raphael Bostic said on Thursday.

"I was thinking late third, maybe early 4th quarter for 2022," Bostic said in an CNBC, when asked when he had penciled in an interest rate hike.

(Reporting by Ann Saphir; Editing by Andrea Ricci)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article