Once the Federal Reserve begins raising rates, it’s likely to raise interest rates at nearly every meeting of the Federal Open Market Committee for two years, according to the dot plot released by the Fed today.
The federal funds rate is now between 0% and 0.25% and is likely to remain there for a “considerable time,” the Fed said Wednesday. But by the end of 2017, the majority of the committee expects the fed funds rate to rise to around 3.75%.
The Fed usually raises rates in quarter-point moves. That means the end game of 3.75% is 13 rate hikes away.