Good morning from the Financial Times. Today is Thursday, December 16th,

and this is your FT News briefing.

The Federal Reserve announced a much more aggressive approach to inflation yesterday,

but investors are placing bets that inflation will be sticking around for a bit.

Plus, we have a wild tale of garbage bags jammed with cash and bank tellers trying to get

the attention of the authorities. Staff noticed that the bank notes would at times carry like a

prominent musty smell as if they'd be kind of stored underneath a floorboards rather than being

used gently for business use. But this week in a rare move, one of Britain's biggest banks

was convicted of breaching money laundering laws. We'll tell you more about it. A Mark

Philippine out and here's the news you need to start your day.

The Federal Reserve expects to raise interest rates three times in the coming year,

and they plan five more rate increases in the following two years.

The US Central Bank announced this more aggressive approach to controlling inflation

yesterday at the end of a two-day policy meeting. The Federal also plans to double the pace at which

it tapers its massive bond buying program. That means this pandemic stimulus measure will end

several months earlier than expected. Investors seemed pretty happy with the Fed's announcement,

though. The big US stock indices all ended the day higher.

Despite the Fed's tougher approach to inflation, investors are still betting that prices will

still keep going up. And so they're pouring money into assets linked to inflation.

Some of them like treasury bonds that are indexed to inflation are being bought as a hedge against

inflation, and then some investments in energy and real estate funds are being bought to profit off

of rising inflation. That's our US capital markets correspondent Kate Dugod.

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