For twenty-five years, the Federal Reserve has worked to reestablish price stability on a sustained basis. An environment of price stability allows households and businesses to make decisions that best promote the longer-term growth of our economy and with it our nation’s continuing prosperity. 4  BIS Review 43/2004
For example, monetary policies also diverged in the middle of the 2000s, with the Bank of Japan continuing its quantitative easing while the Federal Reserve gradually raised its policy rate, and during this period, Japanese financial institutions increased their purchases of U.S. Treasury paper and agency securities.