25 The behavior of financial market prices in periods around changes in the forward guidance is also consistent with the view that the guidance has affected policy expectations. 26 Making policy with nontraditional tools: a cost-benefit framework Making monetary policy with nontraditional tools is challenging. In particular, our experience with these tools remains limited.
In this context, the FOMC carefully compares the expected benefits and costs of proposed policy actions. The potential benefit of policy action, of course, is the possibility of better economic outcomes – outcomes more consistent with the FOMC’s dual mandate.