Fed's forward guidance could change again

The Fed will continue to trim its asset purchases at the upcoming FOMC meeting, which concludes on the 17^th September. There is the possibility that it could also tweak its forward guidance and/or provide more details on its exit strategy. We wouldn't be surprised if the Fed opted to drop its pledge that there will be a "considerable time" between the end of the asset purchases and the first rate hike. We still expect that first rate hike to come in March next year.