Economics
Fed Forecasts to Leave Public Guessing on New Rate-Setting Plan
- Shift may be hard to detect in updated projections this week
- Fed-watchers don’t expect more clarity via enhanced guidance
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The Federal Reserve’s new approach to setting interest rates will probably be hard to divine from the economic projections it’s set to publish on Wednesday.
That’s because those forecasts, released alongside its policy decision, only encapsulate Fed officials’ views about the next few years. The new framework -- which dictates a less-aggressive response to rising inflation than in the past -- likely won’t be put to the test until later on.