Fed Officials Discussing Tightening Pace

Federal Reserve officials are weighing whether they should communicate more of their views about the probable pace of interest-rate increases after they lift off zero next year.

“A number of participants thought that it could soon be helpful to clarify the committee’s likely approach” to the pace of increases, according to minutes of the Oct. 28-29 Federal Open Market Committee meeting released yesterday in Washington.

The discussion last month underscored how much officials will rely on forward guidance in the future. After bond purchases ended last month, language may be the most practical option left to assure investors that policy won’t become overly restrictive if officials decide to take a stand against inflation seen as too low.


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