Monetary policy and the yield curve

At its December meeting, the US Federal Reserve left policy rates unchanged, near zero, while signaling a willingness to hike as many as three times in 2022 to combat inflation. It also announced an acceleration in the pace of the taper that could see the asset purchase program end by March. Once this occurs, the Fed expects to begin raising rates, with an additional three increases penciled in for 2023 and two more in 2024.