Before the Federal Reserve actually begins tightening monetary policy, the policymaking Federal Open Market Committee will formally signal that it is about to begin implementing an “exit strategy,” Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, said Sunday.

That “major transition point” will likely be communicated by the FOMC removing from its policy announcement its commitment to keep the federal funds rate “exceptionally low … for an extended period,” Lockhart said.

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