At the same time, these measures should, as much as possible, remain temporary and targeted in order to address vulnerabilities effectively and support a swift recovery without hampering structural changes in the economy. The EU’s recovery instrument, the NextGenerationEU package, offers a unique opportunity to modernise the European economy and address divergences that could jeopardise the smooth functioning of the monetary union.
- 16 federal funds rate near zero for longer than two of the rules would have prescribed. But as labor market conditions continued to improve over time, the rising trajectories for the federal funds rate prescribed by all three rules signaled that the time was drawing near to begin gradually reducing monetary accommodation.