Fed not fiddling with rate now, aims for mid-range later

[NEW YORK] The Federal Reserve is not actively adjusting its key policy rate now, and after the initial policy tightening, it aims to lift the rate to close to or just below the middle of the given range, the Fed's top market technician said on Wednesday.

In a highly technical discussion with bond traders, Simon Potter, who runs the New York Fed's market operations, said his team is not now actively adjusting the federal funds rate, despite some slight increases in recent days.

The fed funds rate is now set between zero and 0.25 per cent. Looking ahead, when the Fed actually raises the target range for that rate, Potter said it should fall around the middle of that range.

REUTERS