Some general observations It is important to recognize at the outset that conventional and unconventional monetary policy actions bear many similarities. Forward guidance concerning the path of the federal funds rate, for example, is explicitly intended to influence market expectations concerning the future trajectory of shorter-term interest rates and thereby affect longer-term interest rates.
3728-3761; Darracq Pariès, M. et al., op.cit. [29] Adrian, T. and Liang, N. (2018), “Monetary Policy, Financial Conditions, and Financial Stability”, International Journal of Central Banking, Vol. 14, No 1, pp. 73-131; Schnabel, I.