SAN FRANCISCO/NEW YORK (Reuters) – Federal Reserve policymakers have cooled to the idea of explicitly raising the bar on future interest rate hikes, a sign the U.S. central bank is angling for a return to more subtle — and familiar — ways of explaining how it plans to steer the economy.
The Fed, still struggling to boost the U.S. recovery from the Great Recession, remains intent on assuring investors that easy monetary policy is here for the long haul. Households and businesses, in the Fed’s view, need low borrowing costs to get spending and investment back on a self-sustaining path.
SAN FRANCISCO (Reuters) – After months of misfires, the U.S. Federal Reserve’s message is finally getting through to Wall Street: to taper is not to tighten.
Even as the U.S. central bank moves closer to winding down its massive bond-buying program, most likely in the first quarter of 2014, short-term rate futures have rallied, pushing expectations for the first Fed rate hike deeper into 2015.