BIS Review 1/2010  3  Monetary policy future The Federal Reserve will face a number of challenges in the conduct of monetary policy in the period ahead.
I will discuss two of them: further exit from our extraordinary measures, including the large volume of reserves, our outsized portfolio of MBS, agency, and Treasury securities, and our near-zero policy interest rate; and evaluating any lessons from the recent experience for the conduct of policy – in particular, the potential role of financial stability and asset prices in monetary policy formulation. Exit.