It has been more than 10 months since the Federal Open Market Committee (FOMC) last changed the intended federal funds rate. That action, a 25-basis-point cut, followed an equal reduction at the group's December meeting. Over the balance of 1996, market expectations vacillated regarding the direction of the next policy move.
Suggested citation: “Monetary Policy,” Federal Reserve Bank of Cleveland, Economic Trends, no. 96-12, pp. 02-04, 12.01.1996.