Figure 3 provides an illustration. The lower, dashed line shows the path of the expected federal funds rate through 2008 as implied by federal funds and eurodollar futures at the close of the market on April 1, 2004, with an adjustment for the average level of term premiums.
Significant monetary policy stimulus is indeed being provided by our forward guidance on the key ECB interest rates, reinvestments by a sizable stock of acquired assets, and the new series of targeted long-term refinancing operations.