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Federal Reserve Bank of Chicago
Chicago Fed Letter
Changes in the Risk-Management Environment for Monetary Policy
Jonas D. M. Fisher
Francois Gourio
Spencer D. Krane

In response to the massive challenges presented by the global financial crisis, in late 2007 the Federal Open Market Committee (FOMC) began a series of large reductions in its traditional policy tool, the overnight interest rate in the federal funds market. By December 2008 the Committee had lowered the target to its effective lower bound (ELB) of 0 to 25 basis points.1 Later, in an attempt to provide additional monetary stimulus, the FOMC implemented nontraditional policy tools, such as large-scale asset purchases and forward guidance about how long the fed funds rate would stay at very low levels.

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Jonas D. M. Fisher & Francois Gourio & Spencer D. Krane, "Changes in the Risk-Management Environment for Monetary Policy" , Federal Reserve Bank of Chicago, Chicago Fed Letter, number 377, 2017.
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Keywords: Federal Open Market Committee (FOMC); Monetary policy; Risk management
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