LONDON, (Reuters) – The U.S. Federal Reserve is expected to raise interest rates starting in September 2022 according to economists from the nation’s largest bank. This was stated by the 2022 outlook note.

JPMorgan (NYSE 🙂 believes that the central banks will increase rates by 0.25% in the third-quarter of next year. They also plan to keep increasing rates by 25 basis point every quarter, “at minimum until real rates reach zero,” wrote Mike Feroli, chief economist.

On Thursday, the minus 1.12% inflation adjusted yields for ten years (or “real yields”) stood at minus 1.12%.

The Bank’s prediction for the Fed Rate Increase is less conservative than that of some competitors, including Deutsche Bank (DE) The German economy expects the U.S. to increase its interest rates as soon as July 2022. Markets expect a similar increase.

JPMorgan economists predict that the U.S. economy will grow by 3.5% per year in 2022 (compared to 5.5% 2021) and full employment in mid-2022.

Expect inflation to decrease in the next quarters. Core prices will average 2.2% per quarter by 2022, as opposed to 4.2% the fourth quarter.

The economists stated that supply bottlenecks in goods appear to have slowed down and they expect this trend to continue into 2022.