1. A consequence of quantitative easing is that:
the Fed is no longer able to influence the fed funds rate.
it is difficult for the Fed to influence the fed funds rate using open market operations.
the Fed now targets the discount rate to influence the fed funds rate.
the IOER rate as a monetary policy tool has been rendered ineffective.
2. Forward guidance is:
statements today about policy targets in the future.
statements of policy changes and dates those changes will take effect.
asset purchases that shift the composition of the Fed’s balance sheet.
expansion of the supply of aggregate reserves beyond the amount needed to maintain the policy rate target.