In 2012, the Federal Reserve’s Open Market Committee (FOMC) clarified its long-run goals of price stability and maximum sustainable employment in a strategic statement that included for the first time a numerical inflation objective. While these ultimate objectives have evolved over the years, the FOMC’s operating instrument has been unchanged at least since 1981, when it began to target the federal funds rate -- the overnight interest rate on unsecured interbank loans. Since December 16, 2008, the target has been 0.00 to 0.25 percent, effectively at the zero lower bound for nominal interest rates. The history of the federal funds rate target is shown in the accompanying figure (and here).