FOMC Should Delete or Dilute ‘Considerable Time’: SGH Advisors

September 16, 2014
Vincent Cignarella, Wall Street Journal

Sept. 16 (Bloomberg) — FOMC would be better served eliminating the phrase; would allow FOMC to move further along evolution of qualitative guidance adopted last March, Sassan Ghahramani CEO of SGH Advisors writes.

  • Removing the now 2-year-old phrase would mark the last of time-contingent guidance and maximize policy framework on incoming data
  • Elimination would give “exit principles” a broad revamp, realign to more neutral or balanced policy guidance; clear the crossed signals on way to Dec. meeting
  • Fed dilemma is that phrase is seen as a commitment to a rate hike 6 mos. from the end of QE, which is likely to conclude by end of Oct.
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