This risk provides another important reason to support the recovery by maintaining a highly accommodative stance of monetary policy. The conduct of policy with unconventional tools Now turning to monetary policy, I will begin by discussing the FOMC’s reliance on unconventional tools to address the disappointing pace of recovery. I will then elaborate my rationale for supporting a highly accommodative policy stance.
As you know, since late 2008, the FOMC’s standard policy tool, the target federal funds rate, has been maintained at the zero lower bound.