Fed Adopts Outcome-Based Forward Guidance, Will Keep Rates Near Zero For At Least 3 Years

Fed Adopts Outcome-Based Forward Guidance, Will Keep Rates Near Zero For At Least 3 Years

Headed into the September meeting, the Fed wasn't expected to make meaningful changes to the somewhat nebulous forward guidance in the FOMC statement. Those expectations may have been caught at least partially offsides. Although one can quibble over the definition of "meaningful", the Fed did adopt a version of outcome-based forward guidance on Wednesday. Simply put, there were notable changes to accommodate the shift to average inflation targeting (AIT) and the updated approach to the employm
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One thought on “Fed Adopts Outcome-Based Forward Guidance, Will Keep Rates Near Zero For At Least 3 Years

  1. The unemployment figures don’t make sense. Maybe I’m just naive (probably “yes”), but the figures are higher than reported based on the number of claims and number of new jobs. I guess they don’t count people too depressed and dis-spirited from “looking for work.” Just take these suckers out.

    A key takeaway is that U.S. central bank expects mostly so-so growth for years.

    Come January, will be interesting to monitor velocity data in anticipation of AIT. Don’t want to be too early for the relation trade.

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