Taking into consideration such information provided by the Bank, market participants carry out transactions based on their views regarding economic activity and prices; the Bank in turn obtains information regarding market participants' views on economic activity and prices from interest rates formed in financial markets as a result of transactions carried out by market participants, and uses it in making its assessment of economic activity and prices.
A gradual and ongoing removal of accommodation seems likely both to maximize the prospects of a continued expansion in the U.S. economy and to mitigate the risk of undesirable spillovers abroad. References Ammer, John, Michiel De Pooter, Christopher Erceg, and Steven Kamin (2016). “ International Spillovers of Monetary Policy,” IFDP Notes. Washington: Board of Governors of the Federal Reserve System, February 8.