But the FOMC does look at the implications of various rules for interest rates when it makes its policy decisions. The fact that the FOMC has not adopted a formal reaction function might reflect the desire for discretion on the part of some policymakers. But it also reflects the difficulty in reaching a consensus.
But what about our economic prospects as we look ahead? Let me start with the financial climate. Global financial markets have been calmer recently compared with the turbulence last autumn after Russia declared a debt moratorium. Cuts in official interest rates around the world since then, and the success of some emerging market economies in addressing their problems, have clearly helped.