The Federal Reserve’s monetary policy actions in 1994 might appear to represent an abrupt departure from those of the previous year. Six highly publicized increases in short-term interest rates followed a period of relative stability in short-term rates in 1993. The author reviews the actions of the FOMC, the Federal Reserve’s primary policymaking body, over the past two years. He views the FOMC’s actions in the context of the Fed’s support for a policy of long-term price stability.