Economics
Fed Seen Balking Again at Providing Fresh Interest-Rate Guidance
- Economists expect dot plot to show rates near zero through ‘23
- Survey finds Fed’s strategy shift not moving expectations much
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Federal Reserve officials will link interest-rate increases to inflation outcomes when they provide more guidance on the future path of monetary policy, economists said in a Bloomberg survey. They’re just not sure when that guidance is coming.
The Federal Open Market Committee meets Sept. 15-16. Just 39% of respondents to the Sept. 4-10 poll said they expect officials to alter their guidance next week. Almost a third don’t predict the change until 2021, or later. They also saw the central bank’s updated quarterly projections showing interest rates near zero through 2023.