Meyer said he did not expect the Fed's post-meeting explanation of policy moves to become more detailed than it is now, largely because it is difficult to encapsulate the wide differences in the backgrounds and opinions of Fed officials in one release. Fed Chairman Alan Greenspan is able to offer more detail in his twice-annual testimony before Congress, he added. The post-FOMC statement may be a product of consensus but the public addresses by various Fed officials are not coordinated, Meyer said. Meyer added that Fed officials do not sit and discuss what they are going to say in public. BUSH TEAM Meyer also said the central bank takes into account fiscal policy when making decisions on interest rates, though he did not say how the Fed would assess the 11-year tax cut working its way through Congress.
Fiscal policy is slower moving.
Some analysts believe the Fed may halt or slow its rate-cutting campaign ahead, in part because of the boost tax cuts may give to the economy in the latter part of the year. All rights reserved. All information displayed on this page is provided by Reuters and may not be published, broadcast, rewritten or redistributed.