Fed…Interest rates going up next year….

The Federal Reserve showed growing optimism for the economic recovery, as the central bank signaled it will likely ease up its support for the markets if the economy progresses as expected, and Fed officials moved up their expectations for a rate hike in 2022.

In estimates released Wednesday, at the conclusion of the Fed’s two-day policy meeting, Fed leaders lowered their expectations for the unemployment rate, projecting it could be 4.8 percent by the end of the year, compared to 4.5 percent from their June projections. Policymakers continued to expect inflation — which has risen faster and higher than the Fed expected this year — will simmer back down closer to the central bank’s 2 percent target next year.