Rhetoric aligned with theory: talking productively about interest rates
Annual Report, 2001, 6-16
If the recession that began in March 2001 has ended, as many believe, it will be hard to oppose the sentiment that the U.S. economy has navigated some fairly treacherous waters with minimal damage. To many, no doubt, the 475 basis point reduction in the federal funds rate engineered by the FOMC will be one of the heroes of the recovery–expansion story. Should we not, then, re-evaluate the position this Bank has taken in the past—that policymakers should keep their eyes on long-term objectives rather than reacting to perceived, short-term gaps between output and its “potential”?
Keywords: Monetary policy; Economic conditions; Federal funds rate (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
https://www.clevelandfed.org/~/media/content/newsr ... eory%20pdf.pdf?la=en Full text (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedcar:y:2001:p:6-16
Ordering information: This journal article can be ordered from
Access Statistics for this article
More articles in Annual Report from Federal Reserve Bank of Cleveland Contact information at EDIRC.
Bibliographic data for series maintained by 4D Library ().