Monetary Policy and the Federal Funds Futures Market
Events rarely unfold exactly as we foresee them. In the monetary policy arena, for example, the timing and intensity of specific actions can be difficult to anticipate. Following a 15-month period during which no policy action was taken, the Federal Open Market Committee (FOMC), the central bank’s policymaking arm, embarked on a series of moves that has raised money market interest rates seven times since January 1994.
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