In normal times, the Federal Reserve adjusts the stance of monetary policy largely through changes in the Federal Open Market Committee’s (FOMC) target for the federal funds rate. The Federal Reserve then adjusts the supply of reserves in the banking system through open market operations to keep the federal funds rate close to the FOMC’s target rate.
I trust that this multilateral consultation following the Spring 2006 IMFC meeting has been useful. And I have noted with satisfaction that the policy plans, set out by the participants, represent further progress in the implementation of the global strategy that the International Community has endorsed.