Fed Statement Hints Policy Tightening Could Be Done

Minor changes to the wording of the Fed’s closely watched policy statement could signal the bank is done raising interest rates. Previous versions of the statement have laid out the criteria officials are looking at “in determining the extent of additional policy firming that may be appropriate to return inflation to 2 percent over time.” “In determining the extent of any additional policy firming that may be appropriate to return inflation to 2 percent over time,” the statement now reads, “the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.”