This is probably why the Fed has announced the policy rate as a range. In our case, and that of most other central banks that are close to the zero lower bound, the central bank nevertheless announces and fixes a policy rate close to zero. These rates currently vary between 25 and 100 basis points.
Roger W Ferguson, Jr: A review of economic developments in 2001 and the economic outlook Remarks by Mr Roger W Ferguson, Jr, Vice-Chairman of the Board of Governors of the US Federal Reserve System, at the Canton Forum Speaker Series, Canton, Ohio, 27 February 2002. *  *  *  I am pleased to address the Canton Forum today.