On 16 September, the Federal Reserve surprised many observers by releasing new forward guidance on interest rates earlier than anticipated. This follows another earlier-than-expected release of its framework review conclusions during the Jackson Hole symposium last month (for details, see our blog post on the monetary policy framework). However, the lack of market reaction suggests that many investors are not convinced that the Fed’s new guidance represents any material shift in policy. Indeed, we wonder if the Fed leadership is using surprises and emphatic language to try to compensate for a Federal Open Market ... (full story)