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Tlse Fed was to amsisoumsce puhlichv its targets fir meal interest rates, nsuch as it does now with its monetary growths targets. Senate Bill S.2807 specified “yearly’ targets fir pastime real [ommr emphasis) shsort—terns interest rates.’’ One House hill. H. R.6967, emnplsasizecl lousg—teros imsterest rates and required the Fresidemst of tlse Umsited States to eomnmemst on every mnousetarv policy action. Another House bill, H. R. 7218, required the Federal Reserve to estahhshs monthly’ ransges of targets fir slsort-term interest rates, comisistent with historical levels of real interest rates [our empha— sisj....’’ The iusitial Senate Concurremst Resolution 128, which was passed in modified fhrmn oms Decemnher 23, 1982, asked “that the Board of Govermsors of the Federal Reserve and the Open Market Comnmnittee should take suds actions as are necessary to aclsieve and mainitaimi a level of interest rates low enough to

The Fed and the Real Rate of Interest