Business Glossary

expressed inclination of the Federal Open-Market Committee (FOMC), to raise, lower, or keep unchanged, the target federal funds rate, based on current economic conditions. Although it no longer adopts a formal policy bias toward raising or lowering rates, the FOMC communicates its intentions by issuing a "balance of risks " statement when it announces rate actions at its regularly scheduled meetings eight times a year or about every six weeks. The committee may also vote to authorize the chairman, with or without consulation, to take actions between meetings. Such authorizations are called asymmetric directives.