If my expectations about economic growth, employment, and inflation over the coming months are borne out, however, and especially if they come in stronger than I expect, then, as noted in the minutes of the last FOMC meeting, it will become important for the FOMC to begin discussing our plans to adjust the pace of asset purchases at upcoming meetings.
They may include, for example, broad monetary aggregates or market interest rates. In addition, the policy conduct involves certain instruments which a central bank uses to steer the financial conditions under its direct control. These include reserve requirements, the monetary base, as well as the key interest rates at which the central bank provides liquidity to market participants.