The Federal Open Market Committee (FOMC) has acted only once in the past 29 months to change its operating target for the federal funds rate. That action—taken in March 1997—increased the intended funds rate just ¼ percentage point. By historical standards, the duration of such a passive stance is quite unusual.
Suggested citation: “Monetary Policy,” Federal Reserve Bank of Cleveland, Economic Trends, no. 98-06, pp. 02-04, 06.01.1998.