The Federal Reserve on Wednesday signalled that it still expected to keep interest rates near zero for at least six months, but for the first time identified factors that could prompt earlier rate rises. After its FOMC meeting, the Fed tweaked guidance in its policy statement that had been unchanged since March, implying that its stated intention to keep rates at “exceptionally low levels” for an “extended period” may change on factors including inflation expectations, economic growth and unemployment. See also FT Alphaville on the Fed’s “delicate balancing act”.
