As noted in the text, however, most changes in the funds rate are at least partially anticipated, implying that the unexpected component of most funds rate decisions is considerably less than 25 basis points. The effect on year-ahead rate expectations of a typical change in the funds rate is correspondingly reduced, to 5 basis points or less.
4 Relationship between monetary and fiscal policy Fiscal policy can significantly "support" the fight against high inflation. Expansionary fiscal policy would fuel inflationary pressures. I go along with the European Commission's recommendation that EU Member States should phase out the fiscal measures they took in response to the energy price shock.