Blog Post

Good Communication Critical When Federal Reserve Decides to Taper Stimulus

September 19, 2013, Fred Dews

Yesterday, the Federal Reserve’s Federal Open Market Committee decided to continue its monetary stimulus policy (aka “quantitative easing”), an $85 billion/month bond-buying program designed to pump money into a sluggish economy. Justin Wolfers, co-editor of the Brookings Papers on Economic Activity, said that “the Fed got it right.” Senior Fellow Donald Kohn has said that communication about monetary policy exit plans is critical.