I now want to turn to the formation of policy designed to achieve the FOMC’s objectives. 2  BIS central bankers’ speeches  Right now, the FOMC has two types of accommodation in place.
First, it is targeting a shortterm interest rate, the federal funds rate, between 0 and 0.25 percent, and it plans to keep that interest rate that low at least through mid-2013 – that is, for at least the next six to seven quarters. This low interest rate is intended to stimulate consumption by households and investment by firms.