More on Fed rate guidance

My colleagues tell me the story is now up on The subtle point is this. Changing the “extended period” language would not be a signal that Fed rate increases are imminent. Indeed it would not even signal that mainstream officials expect to raise rates in the next six months. As far as I can tell they do not. But it would indicate that these officials think it is quite possible they might raise rates in the next six months. Otherwise why bother changing the language?

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