Shortly thereafter, in view of signs that the attacks had caused a severe negative shock to confidence, the Federal Reserve began to ease monetary policy to cushion the likely resulting pullback in spending by households and businesses, again departing from the prescriptions of monetary policy rules based solely upon available backward-looking data for the recent values of variables such as inflation and unemployment.
Asymmetries and moral hazard Proponents of extra action have their own bones to pick with the conventional strategy, especially as it relates to the alleged asymmetric nature of the policy's response to asset market booms and busts.