According to Wednesday’s projections, Federal Reserve officials anticipate raising rates six more times this year. This would bring its benchmark rate to almost 2%.

According to the release the Fed Open Markets Committee’s median member expects the Fed Funds rates to reach 1.9% by year end. The central bank increased its target range from 25 to 50 basis points on Wednesday. Basis points are equal to 0.01 percent.

The previous projections of the committee, which were released after a mid-December meeting, indicated that most members anticipated three major increases in 2022.

This would have raised the Fed funds rates to 75-100 basis points. Only two members of the committee predicted that the Fed funds rate would rise to 1% in this year’s forecast.

However, the market expects more rises as inflation continues to be high and central bankers signal a more aggressive approach. 

According to CME FedWatch Tool, seven 25-basis point increases were expected by markets on Wednesday midday. This is the latest CNBC Fed SurveyThe average response was for 4.7 increases in this year’s inflation. 

Although the Fed will likely stick with 25-basis point increases, they could decide to increase 50-basis points in one step.