This Economic Letter reviews the changes in the content of the FOMC statements over the past several years and examines how the accuracy of market forecasts of monetary policy has evolved. The analysis complements prior research showing that, as the FOMC took steps to foster greater...

The research literature in economics has explored the task of decision making under uncertainty and has developed theories about "precautionary" policies and "robust" policies. This Economic Letter summarizes some of the latest results and debates in this literature.