OCTOBER 25, 2021 – ATLANTA FED PRESIDENT PREDICTS 2022 RATE HIKE
Raphael Bostic, the President of the Atlanta Federal Reserve, spoke Thursday to CNBC. He is anticipating a growing economy and lasting inflation will cause the Fed to raise rates in the “late third or early fourth” quarter of 2022.
Bostic believes, as restrictions associated with covid are lifted, growth will accelerate, and inflation is here to stay. Inflation is currently running at a 30-year high. The Fed has held rates at zero since the start of the pandemic, but recently they have hinted they are ready to start tapering the monthly asset purchases.
Now would be a good time for you to review any upcoming financings. Rates are at the lowest they can be, which presents an opportunity. Interest rate swaps are a valuable tool to lock in today’s historically low rates in order to avoid rising interest rate obligations in the medium term.