#5 - Scholarly article in Academic Search Complete

Evolving Market Perceptions of Federal Reserve Policy Objectives.

   

Authors:

    Kahn, George A.1

    Taylor, Lisa2

Source:

    Economic Review (01612387). First Quarter 2014, p5-64. 60p.

Document Type:

    Article

Subject Terms:

    *MONETARY policy

    *INFLATION (Finance) -- United States

    *FEDERAL funds market (U.S.)

    *SECURITIES markets

    UNITED States

    UNITED States -- Economic conditions -- 2009-

Company/Entity:

    UNITED States. Federal Open Market Committee

NAICS/Industry Codes:

    523210 Securities and Commodity Exchanges

    523110 Investment Banking and Securities Dealing

Abstract:

    The article focuses on the U.S. Federal Open Market Committee's (FOMC) monetary policy objectives for inflation and the perceptions of the financial markets about the FOMC's setting of its target path for the federal funds rate. The history of the Federal Reserve's legal mandate is explored. It indicates that market participants perceive little change in how the committee adjusts the funds rate in response to incoming news about the country's economic conditions.