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Commentaries — August 27, 2007

Why The Federal Reserve Might Be Changing The Way It Conducts Monetary Policy The effective funds rate has diverged from the target funds rate to a degree never seen before. Meanwhile, the Fed is supplying huge amounts of liquidity and pinpointing it to the troubled areas in the financial markets. This could mark the end… Continue reading Untitled

Open Why The Federal Reserve Might Be Changing The Way It Conducts Monetary Policy
The effective funds rate has diverged from the target funds rate to a degree never seen before. Meanwhile, the Fed is supplying huge amounts of liquidity and pinpointing it to the troubled areas in the financial markets. This could mark the end of the 13-year run of monetary policy being conducted through changes in the target funds rate. What it will be replaced with is still an open question.