Summary of the Federal Reserve's history and policy procedures

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…ederal funds target in the early 1990s. From 1992 to 1994, the Fed kept the federal funds rate at a constant low level. And when the economy had returned to rapid growth in 1994, the Fed began to raise the federal funds rate in order to head off and future inflationary pressure, but with a new policy procedure. Instead of keeping the federal fund rate target secret, the Fed now announced any federal funds target change.