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Fed Moves Toward Tying Interest-Rate Decisions to Economic Data

The Federal Reserve is embarking on the next step in Chairman Ben S. Bernanke’s journey toward greater transparency -- tying its outlook for borrowing costs to measures of employment and inflation.

Policy makers “generally favored the use of economic variables” to provide guidance on the when they are likely to approve their first interest-rate increase since 2008, according to minutes of their Oct. 23-24 meeting released yesterday. Such measures might replace or supplement a calendar date, currently set at mid-2015.