WASHINGTON – The Federal Reserve wants to find a clearer way to signal to the public when it might start raising interest rates.
The Fed has told investors that it plans to keep short-term rates low for at least another three years. But it appears to be leaning toward setting a more specific target, according to minutes from the Fed’s last policy meeting.
Most members agreed at the Sept. 12-13 meeting that linking a future rate increase to a level of unemployment or some other numeric target could be useful. The minutes show members have yet to agree on what the economic target should be. But the discussion signals another option the Fed might pursue if its latest stimulus efforts don’t do enough to boost the weak economy.
After last month’s meeting, the Fed said it planned to keep its benchmark short-term rate near zero until mid-2015, six months later than it previously planned. And it left open the possibility of taking other steps.
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