Fed Bias

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.