Janet Yellen, the Federal Reserve chair, is likely to set in train an acceleration in the pace of interest rate increases on Wednesday as the US central bank responds to an economy that is hitting maximum employment and inflation that is nearing target.

An increase in short-term rates by a quarter point is probable at the meeting following a parade of signals by key policymakers in recent weeks. But with jobs data on Friday beating Wall Street expectations, previously sceptical traders are now betting that the Fed will be able to deliver on December forecasts for a total of three increases this year — with some analysts projecting four rises.

The Fed’s decision this month to deliberately and rapidly shift market expectations to a March increase underscores the strength of the US data and also the influence of buoyant financial conditions shown by the blockbuster rally in the stock market.