Fed prepares faster end to stimulus, making earlier rate hikes likely

The Federal Reserve is expected on Wednesday to announce that it is speeding the end of its pandemic-era bond purchases and signal a turn to interest rate increases next year as a guard against surging inflation.

The identification of the Omicron coronavirus variant last month has added a new level of uncertainty for US central bank officials who, after steadily discounting the impact of the pandemic on the economy's performance, must now assess how the new strain’s faster spread may influence consumers, businesses, and the path of growth and inflation.

Private forecasters polled by Reuters still expect US GDP growth of nearly