Fed expected to raise economic forecasts, extend vow to keep rates low

The two-day meeting is the U.S. central bank’s first under a newly adopted framework that promises to shoot for inflation above 2% to make up for periods, such as now, where it is running below that target. The strategy means the Fed will not take its foot off the monetary gas pedal even if unemployment continues to drop at a faster-than-expected pace.

Fed officials don’t appear ready to translate that framework into an explicit promise to keep the central bank’s key overnight lending rate in its current range of 0% to 0.25% until certain economic benchmarks - say, 2.5% inflation - are met.

https://www.reuters.com/article/us-usa-fed/fed-expected-to-raise-economic-forecasts-extend-vow-to-keep-rates-low-idUSKBN2670IX