Committee participants continued their discussions related to the ongoing review of the Federal Reserve’s monetary policy strategy, tools, and communication practices. Staff briefings provided an assessment of the risk that the federal funds rate could, in some future downturn, be constrained by the effective lower bound (ELB) and discussed options for mitigating the costs associated with this constraint. The staff’s analysis suggested that the ELB would likely bind in most future recessions, which could make it more difficult for the FOMC to achieve its longer-run objectives of maximum employment and symmetric 2 ... (full story)

{video} Some Federal Reserve policymakers expressed concern at their most recent meeting that markets are expecting more rate cuts than the central bank intends to deliver, according to minutes released Wednesday. The Federal Open Market Committee approved a quarter-point rate cut at the Sept. 17-18 meeting, putting the overnight funds rate in a target range of 1.75% to 2%. But documents released at the meeting also showed sharp divisions among members about the future path of policy. Minutes revealed those concerns, along with some worry that a market clamoring for easier monetary policy might be getting ahead of ... (full story)