Under such conditions, the Federal Reserve would typically ease monetary policy by reducing the target for its short-term policy interest rate, the federal funds rate. However, the target range for the funds rate has been near zero since December 2008, and the Federal Reserve has indicated that economic conditions are likely to warrant an exceptionally low target rate for an extended period.
Benoît Cœuré: Triparty Settlement Interoperability Speech by Mr Benoît Cœuré, Member of the Executive Board of the European Central Bank, at the signing ceremony for the Memorandum of Understanding on Triparty Settlement Interoperability, Frankfurt am Main, 15 July 2013.