May Be Time for Fed to Retire ‘Considerable Time’ Phrase
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The sooner the Federal Reserve retires its pledge to keep short-term interest rates around zero for “a considerable time,” the better for Adrian Averre.
The head of G-10 nation rates trading at BNP Paribas has lived with the central bank’s heavy hand since 2008: The Fed has used such forward guidance, along with asset purchases, to exert powerful downward influence over short- and long-term yields. Now, as the economy gets closer to full employment, it might be time for the Fed to let the rate signal go.