In 2009, the Committee stated that economic conditions “are likely to warrant exceptionally low levels of the federal funds rate for an extended period”.14 In 2011, the FOMC said this period would likely last “at least through mid-2013”, and extended this date guidance several times.15 A disadvantage of this calendar-based approach was that it might not be clear whether changes in the date reflect changes in the FOMC’s outlook for growth, for inflation, or a shift in the desired stance of policy.
When I was appointed as the new Governor, one of the things that came to my mind is which direction to navigate this strong and well-respected organization. Then, I was reminded that the BSP is backed by dependable partners, whose continuing support and confidence, enable the institution to address challenges in the pursuit of its mandate, programs, and policies. This includes the FINEX.