The Fed’s Next Step

Now that the Federal Reserve has ended its massive bond-buying programs, will it take the next step towards re-normalizing its policies and signal that interest rates will soon be on the rise? The Federal Open Market Committee will answer this question on Wednesday, when it releases the policy statement at the close of its two-day meeting. For debate at that meeting will surely revolve around whether the Committee should change the language in that policy statement by removing its long-standing promise to continue holding short-term interest rates near zero for a “considerable time.”