Fed May Revise Forward Guidance

Federal Reserve Bank of Atlanta President Dennis Lockhart said policy makers may revise their forward guidance to signal they don’t intend to raise interest rates any time soon.

Fed officials have said since December that an increase in the main interest rate wouldn’t be on the table until “well past” the time unemployment falls below 6.5 percent. The jobless rate stood at 6.7 percent in December.

Lockhart, a consistent supporter of record stimulus who doesn’t vote on policy this year, said “the unemployment rate is not a perfect indicator of the broad health of the labor markets.” Given a decline in labor-market participation, he said, he prefers to look at a broader range of indicators, “more of a dashboard approach.”

Bloomberg

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