Summary Box: How Will the Fed Signal Higher Rates?

SMOKE SIGNALS: Federal Reserve policymakers may signal at their meeting this week how and when the mending economy will lead them to start raising record-low interest rates.

LOW RATES STILL NEEDED: Fed officials have indicated that low rates are still necessary to nurture the economic rebound. Economists doubt the Fed would raise rates before this fall. But eventually, Fed policymakers will need to raise rates to keep inflation in check.

THE TRICK: Signaling beforehand that higher rates are coming so that investors and borrowers aren't jolted.

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