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Options for modernizing the FOMC’s operating target interest rate

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Abstract

The Federal Open Market Committee primarily adjusts the stance of monetary policy through its target range for the federal funds rate. We discuss whether the fed funds rate remains the right operating target for short-term interest rates.

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Handle: RePEc:fip:d00001:101893
Note: This essay was published in conjunction with a speech delivered by Dallas Fed President Lorie Logan.
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File URL: https://www.dallasfed.org/research/economics/2025/0925
File Function: Full text - essay
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File URL: https://www.dallasfed.org/news/speeches/logan/2025/lkl250925
File Function: Full text - speech
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