By Jonathan Spicer and Ann Saphir WASHINGTON/SAN FRANCISCO (Reuters) - Federal Reserve officials fretted last month that investors would overreact to policymakers' fresh forecasts on interest rates that appeared to map out a more aggressive cycle of rate hikes than was actually anticipated. The published rate forecasts of the current 16 Fed policymakers, known as the "dots" charts, suggested the federal funds rate would end 2016 at 2.25 percent, a half percentage point above Fed officials' projections in December. Bonds fell when the charts were initially released, at the close of the U.S. central bank's March 18-19 meeting, as investors priced in slightly sharper rate rises. But in minutes of the meeting published on Wednesday, several of the meeting's participants said the charts "overstated the shift in the projections," suggesting the Fed is not as eager to tighten policy as the dots had seemed to suggest. The minutes drove up Wall Street shares, with all three major U.S. stock indexes ending up more than 1 percent, and caused the dollar to weaken. Traders pushed out their expectations of a first Fed rate hike by about six weeks, to July 2015, trading in interest-rate futures showed. The minutes "eased concern from market participants that the Fed is on a set course to pull back before the economy is ready," said Phil Orlando, chief equity market strategist at Federated Investors in New York. Although the latest chart showed a rise in the median forecast for where rates will be at the end of 2016, some Fed officials thought the change could be misleading. One reason the chart could misrepresent the Fed's policy intentions is that each dot marks a rate forecast from one of 16 Fed officials, of which only nine vote on policy. The minutes also showed that officials wanted to emphasize that the official policy statement, and not the dots charts, give a better indication of the likely path of rates. The president of the Chicago Federal Reserve Bank, Charles Evans, speaking on Wednesday in Washington, underscored that point, saying there are "some serious flaws" with the dot charts because each Fed official has very different policy assumptions. "A lot of the differences of opinion that we have are on full display in those dot charts," he said. The minutes shed little new light on what might prompt an eventual policy tightening after the Fed ends its bond-buying program, which most policymakers thought would be completely wound down in the second half of 2014. After its March meeting, the Fed said in a statement that it would wait a "considerable time" following the end of its bond-buying program before finally raising interest rates. Fed Chair Janet Yellen played down the "upward shift" in Fed officials' rate forecasts in her post-meeting press conference, saying that the "dots" are not the Fed's primary way to communicate policy. But what drew the most attention from financial markets was Yellen's definition of "considerable time" as "around six months," depending on the economy. That comment, along with the forecasts that suggested rates could rise more sharply than Fed officials previously thought, sent stocks and bonds tumbling that day. The minutes, published with the typical three-week lag, record no discussion of what time frame the Fed viewed as "considerable." It did show officials were unanimous in wanting to ditch the quantitative thresholds they had been using to telegraph a policy tightening. "Almost all members judged that the new language should be qualitative in nature and should indicate that, in determining how long to maintain the current (low) federal funds rate, the Committee would assess progress, both realized and expected, toward its objectives of maximum employment and 2 percent inflation." A couple of the voting members wanted to commit to keeping rates low if inflation remains persistently below the Fed's 2 percent goal. The minutes included little on what specific economic conditions might prompt the Fed to raise its key rate from near zero, where it has been since the depths of the recession in late 2008. But they showed that Fed officials engaged in a vigorous discussion of how best to tweak rate guidance, including in a previously undisclosed March 4 videoconference. "We weren't expecting a ton of changes and we didn't get them," said Todd Schoenberger, managing partner at Landcolt Capital in New York. "As the economy sputters along, the Fed will continue doing what it needs to do." (Reporting by Jonathan Spicer and Ann Saphir; Additional reporting by Rodrigo Campos, Ryan Vlastelica and Richard Leong; Editing by Andrea Ricci and Leslie Adler)
Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting
- NBC Sports Boston
The Tampa Bay Buccaneers announced how they'll compensate the fan who initially received Tom Brady's 600th career touchdown pass.
- Kansas City Star
“I knew how much it meant to Tom, and I was willing to trade.”
- Atlanta Black Star
Draya Michele‘s attire at Drake’s birthday party on Saturday, Oct. 23, caused an uproar on social media after fans condemned the reality star for her […]
- Atlanta Black Star
‘Poses Real Problems’: Ex Minneapolis Cop Has Murder Conviction Reversed and Sentencing Reduced; New Precedence Draws Concern as Derek Chauvin Seeks to Appeal His Conviction
Minneapolis’ first cop to be convicted of murder may regain his freedom sooner than anticipated. In an unprecedented turn of events, a Minnesota judge re-sentenced […]
- Yahoo Sports
Gisele Bündchen is an incredibly accomplished woman, not Brady's property to offer up in exchange for a piece of memorabilia.
- Business Insider
A mom told Jeff Bezos that Amazon was underpaying her $90 a month, sparking an internal probe that found the company was shortchanging some workers, a report says
"I'm crying as I write this email," Tara Jones, an Amazon worker, wrote to Jeff Bezos, The New York Times reported.
- The Week
Massive storm brings Lake Tahoe's water levels back above natural rim
Prince William and Kate Middleton just broke a royal rule during their latest...
- Madame Noire
Candace Owens Rips Alec Baldwin Apart In A Series Of Scathing Tweets About His Accidental Shooting Incident: ‘What Has Happened To Alec Would Be An Example Of Poetic Justice’
Candace Owens is back again in headlines for her unwarranted two cents and this time, Alec Baldwin is the culprit.
- Women's Health
The 56-year-old actress and queen of Found Fitness just showed off her sculpted abs in a teeny tiny bikini with metallic accents. And she's lookin' fierce!
- E! News
A little over a week after Travis Barker’s grandiose proposal, Kourtney Kardashian is still on cloud nine. Want proof? See the star strip down for a celebratory photo.
- Good Housekeeping
Former 'Jeopardy!' champion Matt Amodio took to Twitter after he noticed that the current champion Jonathan Fisher didn't have to share an anecdote with 'Jeopardy!' host Mayim Bialik.
- Washington Examiner
New York City store clerks teamed up to thwart a would-be robbery, beating the suspect to the ground with their fists in an incident that was captured by security cameras in the store.
Teresa Giudice is celebrating her recent engagement to boyfriend Luis “Louie” Ruelas with a romantic getaway to Greece. The Real Housewives of New Jersey cast member sizzled while lounging poolside with her fiancé in a teeny blue bikini. Teresa took to Instagram to share a peek into her dreamy vacation with her husband-to-be. In the sweet snapshot posted on October 24, the couple can be seen posing alongside each other in front of a sparkling pool. While Luis donned a white bathing suit and a ba
Kourtney Kardashian shared some topless pics that Travis Barker took on their engagement night—see the romantic photos here!
- The Daily Beast
New York State Sex Offender Registry via APA Georgia man has filed a lawsuit against Jeffrey Epstein’s estate, claiming the late sex-trafficker sold him a Gulfstream jet in the weeks before his 2019 arrest without disclosing that the aircraft was used in a “criminal enterprise.”Thomas Huff claims that JEGE LLC, the company Epstein once controlled and which owns the plane, has been “damaged by the stigma” connected to sex offender.“JEGE’s customers, some of which are very well known to the public
The airline ceased operations, leaving thousands of workers unemployed and others with lower pay on a new carrier, union reps say.
- Miami Herald
A 16-year-old Miami girl has admitted to taking possession of a stolen pistol that was later believed to have been used by her brother to murder Hollywood Police Officer Yandy Chirino, authorities said.
- Patriots Wire
Bill Belichick is a simple man.
- Washington Examiner
A number of Republican members of Congress named in a Rolling Stone report as being involved in planning the details of rallies and electoral certification objection on the day of Jan. 6 ahead of the riot at the U.S. Capitol building, either personally or through top staff members, are pushing back on or outright refuting the story.