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.