The Fed's first forward guidance in 2009 was framed in terms of keeping interest rates low
A)for an extended period.
B)at least until a particular date in the future.
C) based on outcomes for the unemployment rate and inflation rate.
D)until the next Presidential election.

Question

Quizplus · Accepted Answer

The Fed's first forward guidance in 2009 was framed in terms of keeping interest rates low for an extended period. This communicated to the market that they intended to keep rates low for a prolonged period, regardless of changes in economic conditions.

The Fed's First Forward Guidance in 2009 Was Framed in Terms