Wall Street economists are warming to the idea that the Fed may raise interest rates four or more times next year, moving faster than its current forecast.
The Fed has been forecasting three interest rate hikes for 2018, but the market has spent the past year doubting it will move even twice because of the sluggish pace of inflation — and until the second half of the year — the sluggish pace of growth. But growth has picked up to the point where there is potential for a three-quarter run of 3 percent growth, something that last happened in 2005.
The Fed's policymaking committee raised the benchmark short-term federal funds rate by a quarter percentage point to a range of 1.25 to 1.5 percent in December. The Fed raised rates three times this year and five times since it took the rate to zero during the financial crisis.
Read more in CNBC.