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July/August 2002, 
Vol. 84, No. 4
Posted 2002-07-01

Market Anticipations of Monetary Policy Actions

by William Poole, Robert H. Rasche, and Daniel L. Thornton

This article investigates the extent to which market participants anticipate Federal Reserve policy actions. The authors note that a substantial change in the predictability of monetary policy occurred in 1994 and that the period since 1994 has also been one of remarkable economic stability. They believe that greater transparency of monetary policy has contributed to this outcome.