Instead, in most instances, the Committee signaled its decision to financial markets only indirectly through the open-market operations used to affect the rate.2 In February 1994, the FOMC began to release statements to note changes in its target for the federal funds rate but continued to remain silent after meetings with no policy changes.
Statements have been released after every meeting only since May 1999. The FOMC statements have evolved considerably. In their current form, they provide a brief description of the state of the economy and a somewhat formulaic description of the so-called balance of risks with respect to the outlook for output growth and inflation.