Because the U.S. economy required additional policy accommodation after the ELB was reached, the FOMC deployed two additional tools in the years following the crisis: balance sheet policies and forward guidance regarding the likely path of the federal funds rate.
15 The FOMC altered the size and composition of the Fed’s balance sheet through a sequence of three large-scale securities purchase programs, via a maturity extension program, and by adjusting the reinvestment of principal payments on maturing securities. With regard to forward guidance, the FOMC initially made “calendar based” statements, and, later on, it issued “outcome based” guidance.