7 We can use simulations of the FRB/US model to infer the consequences of such a slowdown in longer-run GDP growth for the equilibrium federal funds rate. Those simulations suggest that the slowdown to the 1-3/4 percent pace anticipated in the Summary of Economic Projections would eventually trim about 120 basis points from the longer-run equilibrium federal funds rate.
Will the currency board be continued in BIH? I believe it will for the following reasons: ·  there is widespread support for it because it has provided one of the few elements of stability the people of BH have had for some time;  ·  it would be risky to change it.