(Bloomberg) — U.S. central bankers backed off in July from an earlier readiness to set a clearer bar for raising interest rates, a step that would underscore their commitment to an extended period of ultra-loose monetary policy.
“With regard to the outlook for monetary policy beyond this meeting, a number of participants noted that providing greater clarity regarding the likely path of the target range for the federal funds rate would be appropriate at some point,” according to minutes of the Federal Open Market Committee’s July 28-29 meeting released on Wednesday.
That was a subtle change from the previous set of minutes indicating policy makers were keen to sharpen their so-called forward guidance “at upcoming meetings.” Last month’s debate included a discussion about committing to holding rates near zero until specific thresholds for inflation, or .
Since the last meeting a number of Fed officials have indicated there is less need to offer new guidance so long as the coronavirus pandemic is significantly holding the economy back.
After the minutes were released, gold dropped 3% and the US dollar (yellow) rose.
Yield curve control? The US Treasury Actives curve has barely budged over the last month.