US Fed Sounding More Hawkish

The US Federal Reserve finished two days of meetings yesterday and issued a statement speeding up the end of its quantitative easing (QE) program. Original plans would have had it completely wound down by mid-2022 but, with yesterday's announcement, it looks to finish in March. This opens the door to an accelerated timetable for rate hikes next year, and an increase in the number of hikes from the previously planned one to as many as three. Given the action today by the Bank of England in raising its rate and the sped-up winding down of the European Central Bank's QE program, it gives more credence to a possible boost in the Bank of Canada's overnight rate as early as April.