The Federal Reserve played down forecasts by some of its ownpolicy makers that interest rates might rise faster than theypreviously predicted.

“Several participants noted that the increase in the medianprojection overstated the shift in the projections,” according tominutes of the March 18-19 meeting of the Federal Open MarketCommittee released today. Some expressed concern the rate forecasts“could be misconstrued as indicating a move by the committee to aless accommodative reaction function.”

U.S. stocks rose while Treasuries pared declines after theminutes eased concern about the timing of future interest-rateincreases. Even after rates rise, officials said last month, theymight have to be kept at levels considered below normal for longerbecause of tighter credit, higher savings and slower growth inpotential output.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.