3 More research would be called for in an attempt to further elaborate on the effects of the deterioration of banks’ balance sheets and the protracted zero interest rates on the efficiency of the resource allocations. In this context, I would highlight the subtle distinction between money and credit in a period of deflation.
As currently formulated, the announcement has four parts: the first states the target for the federal funds rate; the second briefly explains the Committee’s analysis of current economic conditions; the third provides the Committee’s assessment of the risks to price stability and economic growth; and the last provides Committee members’ votes.