Because the final year or so of the longer horizon is heavily influenced by our longer-term objectives, a more comprehensive measure is now also useful and appropriate. FOMC members will be making their forecasts quarterly, thereby adding two rounds to the semiannual forecasts keyed to our monetary policy reports and Chairman Bernanke's testimonies.
The instruments can also help to dampen growth in asset prices that pose risks to financial stability. The macro-prudential measures may require banks to hold additional capital buffers, have higher proportions of stable funding, or limit the share of high loan-to-value ratio (LVR) residential lending.