The Fed Makes a Move Towards Untangling Fed Speak

“The Federal Reserve is inching closer to revamping its communication strategy by stating more explicitly than before what would get officials to start raising short-term interest rates.

Under a new approach being considered by senior officials, the Fed would state how high inflation would have to rise or how low unemployment would have to fall before it would begin moving rates, which have been near zero since late 2008.

“Several of my [Fed] colleagues have advocated such an approach, and I am also strongly supportive,” Janet Yellen, the Fed’s vice chairwoman, said in a speech Tuesday at the University of California, Berkeley.”

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