At the March 2009 meeting, the Federal Open Market Committee (FOMC) indicated that it viewed economic conditions as likely to warrant “exceptionally low” levels of the federal funds rate for an “extended period.” This language was intended to provide more guidance than usual about the likely path of interest rates and to help financial markets form more accurate expectations about policy in a highly uncertain economic and financial  BIS Review 66/2010  5  environment.
By noting that the federal funds rate was likely to remain at “exceptionally low” levels for an “extended period,” the FOMC likely was able to keep long-term interest rates lower than would otherwise have been the case.