BIS Quarterly Review– March 2016

by Optimization with an Impact (OpIm)

“In real terms, the US policy rate had been negative since 2008 (Graph 1, left-hand panel). The Federal Open Market Committee (FOMC) signalled that the shortfall of inflation below its 2% objective, and uncertainty surrounding economic conditions more broadly, were expected to warrant only gradual increases in the federal funds rate. Nonetheless, the decision marked a turning point in an era of extraordinary monetary accommodation.”