Spurred on by the financial crisis, the importance of macro prudential policy has come to be emphasized as the missing pillar within the existing edifice of financial stability.
In that spirit, the FOMC takes a forwardlooking approach to policymaking, whereby each policy decision the FOMC makes is grounded not just in current assessments of the economy but also in expectations for how the economy will evolve relative to our goals. Individual participants develop their own forecasts of the economy’s evolution.