So, whilst the euro area money market is highly integrated, permitting the first part of the pass-through chain to function in an homogeneous way, in contrast the link between market rates and banks’ retail interest rates, i.e. the second part of the pass-through chain continues to show a significant degree of heterogeneity within the euro area.
FOMC participants will adjust their assessments of the appropriate path for the federal funds rate in response to changes to their economic outlooks and to their judgments of the associated risks as informed by incoming data.