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25 Feb 2015
FOCM March statement could mirror Yellen text – Hislenrath
FXStreet (Mumbai) - Wall street Journal’s Fed watcher Jon Hilsenrath believes the March FOMC meeting statement could be almost similar to the Fed chief Yellen’s testimony.
He notes that the Fed could replace “patient” with “Provided that labor market conditions continue to improve and further improvement is expected, the Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when, on the basis of incoming data, the Committee is reasonably confident that inflation will move back over the medium term toward our 2 percent objective.”
“The phrase 'reasonably confident' appeared in the minutes of the December FOMC minutes. Several officials have said they want to start raising rates by June. It still isn't clear, however, if they'll reach the inflation confidence threshold by then," Hilsenrath notes.
He notes that the Fed could replace “patient” with “Provided that labor market conditions continue to improve and further improvement is expected, the Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when, on the basis of incoming data, the Committee is reasonably confident that inflation will move back over the medium term toward our 2 percent objective.”
“The phrase 'reasonably confident' appeared in the minutes of the December FOMC minutes. Several officials have said they want to start raising rates by June. It still isn't clear, however, if they'll reach the inflation confidence threshold by then," Hilsenrath notes.