The Federal Reserve’s message to markets Wednesday should be more dovish than not, despite the mixed signals officials have been sending.
Fed Chairman Ben Bernanke has said the Fed will ease until employment and the economy improves and on Monday he reiterated that the economy is not doing as well as the Fed hopes it would be doing. But other officials have recently been less dovish.
San Francisco Fed President John Williams, for one, sent perhaps the biggest jolt last week when he said the Fed could begin to taper off asset purchases in the summer, earlier than the markets had expected. But traders since shrugged off those comments after the disappointing March nonfarm payrolls Friday and other soft data convinced them that the jobs recovery could be stalling and the Fed would continue its easy policies for quite a while.
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