Mention monetary policy, and the first thing that many people think of is the federal funds rate. Thus, to the extent that the behavior of the funds rate is truly synonymous with monetary policy, the news from the latest meeting of the Federal Open Market Committee (FOMC) is no news: Subsequent to that meeting, the federal funds rate has remained in the 5-1/4% neighborhood where is has resided since January 1996.
Suggested citation: “Monetary Policy,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-03, pp. 02-04, 03.01.1997.