The Federal Reserve might be on its way to making a mistake, but it is hard to know in which direction.
The Fed on Wednesday set the stage for raising rates earlier and by more next year than it had previously expected. Its move to wrap up its bond purchases by March opens up the possibility of an initial rate increase in the spring, and its projections now show policy makers expect to raise their target range on overnight rates by 0.75 percentage point by the end of next year, whereas they were previously split on whether to raise rates at all.