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Fed bias

Fed bias Definition

Fed bias is the intention of the Federal Open Market Committee to modify or keep unchanged  the Federal Funds Rate. The Committee analyzes the current economic conditions and makes a suggestion if the rate should be raised, lowered or kept unchanged. The FOMC no longer adopts a formal policy bias, it communicates its intentions by issuing a "balance of risks" statement eight times a year. This statement indicates how the Fed is leaning in terms of the next interest rate change.







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