Financial markets are moving into a new era |


What Federal Reserve Chair Jerome Powell said in staid tones on Wednesday may not have sounded momentous. It was.

What’s happening: The US central bank now expects to raise interest rates in 2023 as the post-pandemic economy booms and inflation rises. That’s sooner than it indicated in March, when the Fed predicted rates would stay near zero for at least the next two years.

And officials are starting to discuss when to roll back the Fed’s huge asset purchase program, which has been gobbling up $120 billion in securities a month to keep borrowing costs low.

“You can think of this meeting that we had as the ‘talking about talking about’ meeting, if you’d like,” Powell said, indicating that a policy change is at least on the central bank’s radar.

The shift was immediately felt across markets, which have been drunk on crisis-era…

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