This directive instructs the Manager to implement open market operations during the period between this and the next FOMC meeting so as to maintain the federal funds rate as close as possible to the intended rate.
Point of Departure: Constant Money Growth Rule Given that the Federal Reserve, like most other central bank today, operates by setting a near-term interest rate target, my focus is on developing some guiding principles for setting the interest rate target, more precisely, for adjusting the interest rate target in response to changing economic conditions.