Fed to Change Rate Guidance as Unemployment Falls

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Feb. 19 (Bloomberg) -- Federal Reserve policy makers plan to soon change their guidance for the path of interest rates as unemployment declines toward a threshold for considering an increase in borrowing costs, minutes of their January meeting showed. Peter Cook reports on Bloomberg Television’s "Bottom Line." (Source: Bloomberg)

Good afternoon.

These minutes, the last meeting under fed chairman ben bernanke, when the fed chairman continue to scale back its bond buying program another 10 lane dollars.

Another jobs report.

The first testimony of janet yellen.

They saw the economic outlook basically on track despite volatility in emerging markets.

They made very few changes in their statement.

The minutes say all members agree the cumulative improvement and the likelihood of continued improvement indicated it would be inappropriate -- appropriate at this meeting.

At the table, i number of participants noticed they should be ready to adjust if the economies took a turn for the worse.

They indicated changes are coming and that is important.

Participants agreed with the unemployment rate approaching, it would be appropriate for the committee to changes forward guidance for the committee to make decisions.

A range of ideas were discussed.

Including changing thresholds other spoke about, listing more factors that would guide their decisions.

Running below their target as factors to be considered.

That is something to be watched for going forward.

A pretty robust can start -- discussion around the table.

A few participants raised the possibility might be appropriate to increase the federal funds rate relatively soon.

The equilibrium interest rate moves higher.

A couple suggested the federal funds rate should be moved before the middle of the year.

Other participants at the table shot the idea down, saying standard policy rules do not fit the current environment and that ended the discussion, but the discussion happened and it is certain to generate talk on wall street.

Finally, toasted or roasted ben bernanke at his final fed meeting.

If there were cheers for him or a wave goodbye, it is not documenting that.

Peter cook joining me in studio.

Thank you.

More on the fed minutes, brian

This text has been automatically generated. It may not be 100% accurate.


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