-9accommodate rather than offset modest upward pressures to inflation in what could be described as a process of opportunistic reflation. 15 Policy at the ELB Second, the Committee is examining what monetary policy tools are likely to be effective in providing accommodation when the federal funds rate is at the ELB.
16 In my view, the review should make clear that the Committee will actively employ its full toolkit so that the ELB is not an impediment to providing accommodation in the face of significant economic disruptions. The importance and challenge of providing accommodation when the policy rate reaches the ELB should not be understated.