Federal Reserve Chairman Ben Bernanke will release his carefully crafted explanation of how the central bank plans to withdraw fiscal stimulus. Fed officials said the tightening will begin with a modest increase to the federal-funds interest rate, but they emphasized that interest rates will remain low for quite a while. The Fed plans to use different approaches to dry up excess liquidity and not rely entirely on interest rates. "We're in a different situation than ever before, and the tools we are using are entirely new," said former Fed Governor Lyle Gramley.
Published in Brief: