How does a central bank normalize monetary policy after a long spell of unusually low interest rates? This may seem like a question very much of the present, as Fed leaders ponder interest-rate policy following the Great Recession of 2007- 2009 and the tepid U.S. recovery. But it’s also a challenge the Fed confronted two decades ago. In 1994, the Federal Open Market Committee (FOMC) wrestled with a similar dilemma as it considered emerging from a sustained period of low interest rates, amid signs of a reviving economy, growing aggregate demand, and no obvious signals of inflation.<\/p>\n
The Richmond Fedeal Reserve reports\u00a0Emerging from Low Interest Rates<\/strong><\/a><\/p>\n How does a central bank normalize monetary policy after a long spell of unusually low interest rates? This may seem like a question very much of the present, as Fed leaders ponder interest-rate policy following the Great Recession of 2007- … Continue reading ![\"Low](\"http:\/\/www.w-t-w.org\/en\/wp-content\/uploads\/2015\/11\/Low-Interest-Rates-300x275.jpg\")
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