from the Richmond Fed
– this post authored by Alexander L. Wolman
In September 2020, the Federal Open Market Committee shifted its language regarding maintaining the federal funds target range. The FOMC was now planning to maintain the rate until the economy not only was moving in the preferred direction but had actually achieved its goals. Taken in isolation, this shift presents some risks, but the additional language in FOMC statements makes clear that the committee will further shift its plans should conditions arise that compromise its goals.
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