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Fed's Transition from Monetary to Interest Rate Targets By: Anonymous The Fed’s Transition from Monetary Targets to Interest Rate Targets Introduction The Federal Reserve appeared to be taking on a completely different stance in 1994 versus 1993. During 1993 there were no changes in the policy directives of the Federal Open Market Committee and short-term interest rates remained steady. In contrast, during 1994, the FOMC announced six different policy changes while at the same time making an adjustment …

…out by the lack of any visible sign of inflation at the end of 1994. Additional time will provide the necessary information to determine if this policy stance is still effective in the future and adjustments will undoubtedly have to be made. Bibliography References “The FOMC in 1993 and 1994: Monetary Policy in Transition.” Federal Reserve Bank of St. Louis Review, March,1995 “Flying Swine: Appropriate Targets and Goals of Monetary Policy” Journal of Economic Issues, June, 1996 ------------------------------------------------------------------------ **Bibliography**