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Fed Minutes Show FOMC Backs Away From September Guidance Shift

Greater clarity on rate path seen appropriate ‘at some point’
Coronavirus pandemic to weigh heavily on economy in near term

The Marriner S. Eccles Federal Reserve building stands in Washington, D.C. — The Marriner S. Eccles Federal Reserve building stands in Washington, D.C.Photographer: Andrew Harrer/Bloomberg

By

Christopher Condon,

Matthew Boesler, and

August 19, 2020, 6:08 PM UTCUpdated onAugust 19, 2020, 10:17 PM UTC

U.S. central bankers backed off in July from an earlier readiness to set a clearer bar for raising interest rates, a step that would underscore their commitment to an extended period of ultra-loose monetary policy.

“With regard to the outlook for monetary policy beyond this meeting, a number of participants noted that providing greater clarity regarding the likely path of the target range for the federal funds rate would be appropriate at some point,” according to minutes of the Federal Open Market Committee’s July 28-29 meeting released on Wednesday.