It looks like they will keep their policy more vague too – from the

The Federal Reserve could signal it is likely to keep short-term interest rates near zero into 2014 or beyond, to bolster the fragile economic recovery.

Fed officials have grown increasingly uncomfortable with their August statement that they are likely to hold short-term rates exceptionally low at least through mid-2013. Some believe low inflation and high unemployment could warrant low rates for longer.

Updating the view on rates has become an important part of Fed discussions about how the central bank explains its goals and policies to the public. Officials could agree at their next policy meeting Jan. 24-25 to a broad revamp of their communications.

When the Fed revises its communications approach, there is a good chance it will cease offering a fixed date for the timing of rate increases. Instead, officials could signal their intentions by publishing a range of their forecasts for rates along with their quarterly economic projections. Some officials see this approach as one that would be easier to update and would better link the Fed’s guidance with its outlook for the economy.

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Jim the Realtor
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