SALT LAKE CITY Nov 2 The Federal Reserve's use
of calendar dates to guide expectations about monetary policy
has been surprisingly effective, a top Fed official said on
"The calendar date has been pretty effective at aligning
expectations with our own view," San Francisco Fed President
Williams told reporters after a speech here. "There's a little
bit in my mind of, if it ain't broke, don't fix it."
Fed policy-makers have been considering a switch to using
numerical thresholds to guide monetary policy. Chicago Fed
President Charles Evans has been a big proponent of the idea,
saying the Fed should vow low rates until unemployment falls
below 7 percent, as long as inflation does not threaten to rise
about 3 percent.
Williams said that in theory he prefers the idea of tying
policy to economic indicators, but that in practice he is
worried that it is too difficult to get it right.