The US Federal Reserve signaled Wednesday as many as three interest rate increases for 2022, in an aggressive move to tame record inflation.
The projections showed the median projection for the federal funds rate at 0.9 next year, which means the central bank may make three hikes of 25 basis points each.
The projection in November, 0.3, indicated only one hike for next year.
The bank expects the unemployment rate to average 3.5% next year, down from its previous estimate of 3.8% in September.
It forecasts US GDP growth at 4% for 2022, also up from the previous expectation of 3.8%.
Inflation figures were revised upward for next year.
The Fed's preferred inflation indicator, personal consumption expenditure (PCE) inflation is anticipated at 2.6%, up from 2.2%.
Similarly, core PCE inflation was revised to 2.7% from 2.3%.
The Fed forecasts both indicators to reach 2.1%, toward its long-term 2% inflation goal, only in 2024.