FOMC in 1998: Can It Get Any Better Than This?

This article explores how the Federal Open Market Committee (FOMC) largely contributed to the solid performance of the United States economy in 1998. The author discusses how the FOMC focused on domestic spending growth, tight labor markets, and increasing money stock growth to create a monetary policy that prevented increase in domestic demand. Further, the data illustrate how the committee also eased policy to accommodate the increasing demand for liquidity caused by Russia's default on its domestic debt and economic weaknesses in Asia and Latin America.