By Ann Saphir
(Reuters) – Wall Street bond dealers began anticipating an earlier first interest-rate hike from the Federal Reserve after last month’s policy meeting, according to the results of a poll by the New York Fed released on Thursday.
That was exactly what Fed policymakers had feared would happen after the central bank published fresh forecasts on interest rates that appeared to map out a more aggressive cycle of rate hikes than previously expected, minutes of the meeting released Wednesday showed.
WASHINGTON/SAN FRANCISCO (Reuters) – Federal Reserve officials fretted last month that investors would overreact to policymakers’ fresh forecasts on interest rates that appeared to map out a more aggressive cycle of rate hikes than was actually anticipated.
The published rate forecasts of the current 16 Fed policymakers, known as the “dots” charts, suggested the federal funds rate would end 2016 at 2.25 percent, a half percentage point above Fed officials’ projections in December. Bonds fell when the charts were initially released, at the close of the U.S. central bank’s March 18-19 meeting, as investors priced in slightly sharper rate rises.
WASHINGTON/SAN FRANCISCO (Reuters) – Federal Reserve policymakers fretted last month that investors would overreact to published forecasts that suggested a more aggressive cycle of interest rate increases was coming down the pike than they planned.
Minutes of the Fed’s March 18-19 policy-setting meeting released on Wednesday shed little new light on what might prompt an eventual policy tightening.
/PHILADELPHIA (Reuters) – The Federal Reserve needs to be more specific about what economic conditions would prompt it to raise interest rates from current rock-bottom levels, a pair of top Fed officials normally at loggerheads on policy said on Tuesday.
A third, meanwhile, warned that the Fed should be sure not to withdraw monetary policy accommodation before the economy is ready.
ROCHESTER, Minnesota (Reuters) – The Federal Reserve should do more to boost both inflation and jobs, a top Fed official said on Tuesday, including possibly pushing its main interest rate even lower or cutting the rate it pays banks on excess reserves kept at the U.S. central bank.
“The key is for us to be able to demonstrate in an effective fashion that we are committed to the recovery,” Narayana Kocherlakota, president of the Minneapolis Federal Reserve Bank, told reporters after a speech.