Fed officials stated that the strengthening economy and high inflation might cause interest rate hikes to occur earlier and faster than previously anticipated.

According to the minutes of the December 14-15 Federal Open Market Committee meeting released yesterday evening, “Participants generally indicated that it might be appropriate to raise the federal funding rate sooner or faster than previously anticipated, given their individual expectations for the economy, labor market and inflation. “

“Some participants also noted that it may be appropriate to begin shrinking the Fed balance sheet right after it started raising the federal funding rates,” the minutes said.

Investors expect the Fed to start raising interest rates in March.