Fed needs to revise forward guidance soon

There is a strong possibility that February's labour market figures, due out this Friday, will only make the Fed's job even harder. There is a chance that the unemployment rate could have hit the 6.5% threshold in February. Even if it doesn't reach the threshold quite that soon, it will within the next couple of months. Under those circumstances, we would expect the Fed to keep going with its taper. It will also need to revise its forward guidance on when it might begin to raise its policy rate from near-zero.