March 31, 2012
“…economic conditions – including low rates of resource utilization and a subdued outlook for inflation over the medium run – are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.”
Federal Reserve Open Market Committee -January 25, 2012
Transparency has become the Federal Reserve Board’s mantra under Chairman Ben Bernanke. The Board’s once opaque monetary policy setting arm, known as the Open Market Committee (OMC), now spells out its policies with precise detail. While we prefer this new transparency over the ambiguity of the past, it is their message that we now find to be challenging.