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Fed meeting’s outcome could depend on a single sentence

The Fed Last Updated: May 2, 2023 at 6:36 p.m. ET First Published: May 2, 2023 at 4:22 p.m. ET How does the U.S. central bank indicate where monetary policy is headed? Jerome Powell departs after testifying in March before the Senate Banking Committee. Win McNamee/Getty Images More than at most of its meetings, the

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The Fed

How does the U.S. central bank indicate where monetary policy is headed?

Jerome Powell departs after testifying in March before the Senate Banking Committee.

Win McNamee/Getty Images

More than at most of its meetings, the Federal Reserve’s decision on Wednesday is going to come down to a single sentence in which the central bank tries to describe where it thinks its policy is headed next.

At its last meeting in March, the Fed’s key statement read: “The Committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time.”

The…

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