For instance, short-term funding costs for banks and commercial paper issuers have come down recently, and issuance of investmentgrade bonds by nonfinancial corporations appears to have held up well. Banks have recently issued bonds backed by the FDIC guarantee. That said, investor concerns about credit quality have increased further, and risk aversion remains intense.
Thus, it is all the more important to make very clear to markets that, ex ante, they can always map the expected path of the policy rates relative to the evolution of macroeconomic conditions on the basis of the unambiguous goal of very solidly anchoring inflation expectations. 26  Lorenz (1972).