The official said forward guidance was appropriate when rates were at zero and flagged a review of whether the FOMC should meet six times or eight times a year.
Federal Reserve official Paulson said it is not possible to provide interest-rate guidance at present and that policymakers are keeping an open stance. He said forward guidance, or central bank communication about the future path of rates, was appropriate when interest rates were at zero. Paulson also said he wants to see more progress on core inflation before offering clearer direction and is weighing the pros and cons of the Federal Open Market Committee holding six meetings a year instead of eight.