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Fed's Bullard Says Investors Should Prepare for Uncertainty Era

  • Interest rates will be debated and not signaled in advance
  • Bullard: FOMC forecasts will be best guide to predicting rates

Federal Reserve Bank of St. Louis President James Bullard said investors should prepare for uncertainty on whether the Federal Open Market Committee will raise its target interest rate at each meeting next year, as the era of signaling moves is over.

“We are going to return to an era where there is a bit more uncertainty about what the committee is going to do, meeting to meeting,” Bullard, who votes next year on policy, told reporters after a speech in Fort Smith, Arkansas. “Markets have been used to us being at zero for seven years where we didn’t have this kind of uncertainty. I would welcome the return of that.”