The Fed Turns Aggressively Dovish with 'Evans Rule'

Cita: 

Philips, Matthew y Peter Coy [2012], “The Fed Turns Aggressively Dovish with 'Evans Rule'”, Business Week, New York, 12 de diciembre, http://www.bloomberg.com/bw/articles/2012-12-12/the-fed-gets-aggressivel...

Fuente: 
Business Week
Fecha de publicación: 
Miércoles, Diciembre 12, 2012
Idea principal: 

Wednesday's announcement from the Federal Reserve's Open Market Committee marks a significant escalation in the Fed's efforts to boost the economy. Rather than tying monetary policy decisions to far-off points in time, or signaling its intentions through vague pronouncements about whether the economy is showing moderate or modest growth, policy will now be tied directly to hard, numerical targets. Namely, the Fed will keep short-term interest rates near zero as long as unemployment remains above 6.5% and the inflation it expects in one to two years is no higher than 2.5%. The Fed's decision isn't purely an Evans Rule, which used only the inflation rate and the unemployment rate as guides to policy. The Fed said it will also consider other information, including additional measures of labor-market health. The Fed also chose to keep buying $45 billion of Treasuries per month in 2013, replacing the expiring Operation Twist with an equally accommodating expansion of QE3.