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.