The Wall Street Journal is out with an early preview of Wednesday’s FOMC meeting that focuses on the pledge to keep rates low for a “considerable period.”
Some vocal members want to drop it while others a feeling jittery after the volatility in markets and don’t want to stir the waters as they begin to calm.
The other camp of Fed officials wants to leave the “considerable time” language in the statement this week to avoid rattling the markets, which have been volatile lately because of slowing global growth. These officials wouldn’t want to drop the phrase now and possibly prompt investors to think wrongly that the Fed is likely to raise interest rates sooner than expected. They would rather wait to adjust the language at Fed’s December meeting, which is followed by a press conference at which Chairwoman Janet Yellen can fully explain any change.
