skip to main navigation skip to secondary navigation skip to content
Board of Governors of the Federal Reserve System
skip secondary navigation
Federal Reserve Board of Governors

Credit and Liquidity Programs and the Balance Sheet

Longer-term issues

In response to the financial crisis, the Federal Reserve promoted economic recovery through sharp reductions in its target for the federal funds rate and through purchases of securities. When economic conditions and the outlook for future economic activity and inflation warrant, the Federal Reserve expects to start the process of normalizing the stance of monetary policy and the size and composition of its balance sheet. The timing and pace of policy normalization will be determined so as to promote the Federal Reserve's statutory mandate of maximum employment and price stability.

On September 17, 2014, the FOMC issued a statement on its policy normalization principles and plans. Additional information is available on this website.

Policy Normalization

Return to topReturn to top

Last update: October 21, 2014