Fed to raise interest rates

New York (CNN Business) - The Federal Reserve expects to raise interest rates in 2023, according to new economic projections the central bank published on Wednesday.

That’s a sharp contrast from the Fed’s previous forecast in March, in which the central bank predicted rates would stay near zero for at least the next two years.

Some members of the Federal Open Market Committee -- which decides the central bank’s policy -- are in favor of raising interest rates next year, the projections show.

The central bank also expects stronger growth, with real gross domestic product -- the broadest measure of economic activity -- climbing 7% in 2021, up from 6.5% in the March projections.

But with stronger growth comes higher inflation.