The target set by the FOMC for the federal funds rate applies to the entire country. But that single policy has a different impact on different parts of the country, depending on their concentration of interest-sensitive industries.

To protect the economy in the short run, the Fed acted quickly on five fronts to provide emergency liquidity. But in the long run, no major change in monetary policy should be needed because the fundamentals of the economy remain solid.

It has been said that, "forecasters may never be right, but they are never in doubt." Not with a good model by their side, that is.

The low and stable inflation that the Fed has relentlessly pursued over the past decade or so has buoyed virtually all demographic groups, enabling most Americans to do a lot more than just keep their heads above water.