On September 17, 2014, the Federal Reserve’s (Fed) policymaking arm, the Federal Open Market Committee (FOMC), met for the sixth time this year. On the one hand, the FOMC surprised markets by announcing “how” it

would exit from quantitative easing (QE) and reduce the size of its balance sheet in the coming years. On the other hand, the FOMC calmed markets by not making any substantive changes to its forward guidance to the public

and financial markets on when it would begin raising rates. The statement released after the meeting once again said that the FOMC would keep rates low for a “considerable time” after QE ends. However,the new set of economic

and rate forecasts by FOMC members indicated…

Mind The Gap