Fed sends mixed messages on future interest rates

FOMC's update of forward guidance overshadowed by ‘erratic' long-term projections

Janet Yellen's first FOMC meeting
Federal Reserve

The Federal Reserve yesterday insisted the federal funds rate could remain below normal levels once the US economy reaches full employment, while simultaneously revising up interest rate projections for 2015 and 2016.

The Federal Open Market Committee (FOMC) as expected updated its forward guidance of the fed funds rate, stating it will remain at the zero lower bound for a "considerable" time after the bank ends its monthly asset purchases, and "below levels the committee views as normal in the

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