WSJ Fedwatcher Jon Hilsenrath wrote about significant slack in the labor market and said the jobs report likely doesn’t change that view.
The other big focus of the meeting is the phrase “considerable time” as the measure of how long rates will stay low after QE ends. He wrote about that today.
It’s not clear that officials will dump the low rate assurance this time around
He notes an interview with Boston Fed president Eric Rosengren where he said October might be a better time for a change.
They could even feasibly wait until December to change the “considerable time” language and simply lop off for now the reference to the bond program in the forward guidance. But it is clearly at the center of discussions as officials prepare for next week’s meeting, and on the table for a shift.
