Should these risks threaten to materialize, however one gauges the probabilities, I am confident that members of the FOMC will have the tools and convictions to adjust policies appropriately. Conclusion Monetary policy has done much to ease credit conditions and improve financial market functioning. And it is playing an important role in setting the conditions for the real economy to prosper.
But, the Federal Reserve cannot and should not do it alone. Other policymakers must bear their burden and do their part to encourage more-robust economic growth and establish the conditions for stronger employment. 4  BIS Review 147/2010