US Fed Also Opens The Door To March Interest Rate Hikes

The Federal Reserve's Federal Open Market Committee (FOMC) , like the Bank of Canada (BoC), held the line on interest rates but, again like the BoC, signalled that rates could soon go up. Today's statement by the FOMC said rate hikes "will soon be appropriate" in light of continuing high inflation and strength in the labour market. This could come as quickly as early-March. Also, like the BoC, the Fed said it could begin shrinking its balance sheet by reducing its bond holdings when rate increases kick in.