Fed Forward Guidance in the Spotlight

Yellen Fed Begins to Take Shape

Over the course of the next few meetings of the Federal Open Market Committee (FOMC), the character and spirit of the Yellen Fed is likely to take shape with some noticeable differences from the Bernanke era.  FOMC meetings are scheduled for 17-18 March, 29-30 April, and 17-18 June 2014.  The March and June meetings include a press conference by the Chair and the release of a revised quarterly “Summary of Economic Projections,” which gives the views of FOMC members.  The two press conferences will give Yellen ample opportunity to define the nature of monetary policymaking under her leadership.  We expect Yellen to give considerable attention to how forward guidance is communicated.

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