Speculation swirls over Fed language on rate hike
Source: AP-EXCITE
By MARTIN CRUTSINGER
WASHINGTON (AP) — When the Federal Reserve issues a policy statement after it meets this week, the financial world will be on high alert for two words:
"Considerable time."
The presence or absence of that phrase will trigger a rush to assess the likely timing of the Fed's first increase in interest rates since it cut them to record lows in 2008.
The Fed's recent statements have said it expects to keep its key short-term rate near zero for a "considerable time" after it stops buying Treasurys and mortgage bonds. Those bond purchases have been intended to keep long-term rates down to support the economy.
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In this Thursday, Aug. 21, 2014 photo, Federal Reserve Chair Janet Yellen arrives for a dinner during the Jackson Hole Economic Policy Symposium at the Jackson Lake Lodge in Grand Teton National Park near Jackson, Wyo. Yellen will be pressed to clarify the Fed's intentions after the Fed issues its policy statement on Wednesday, Sept. 17, 2014. (AP Photo/John Locher)
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