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The urge to declare victory and get back to normal policy after an economic crisis is strong.
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The second obvious thing is the need to get back to normal monetary policy: positive real interest rates that reward savers.
Fed officials face competing challenges as they try to get monetary policy back to normal over the next several years.
As the economy recovers, the Fed must bring policy back to normal.
But the move did demonstrate that the Federal Reserve's preparations were becoming more concrete, and it highlighted the delicate task of bringing monetary policy back to normal without disrupting financial markets.
If the Fed really wants to, "...generate sustained improvement in labor market conditions", it needs to get monetary policy back to "normal".
If T-Mobile wants to stay in the game and not lose out to Cingular even more, it better start changing its policies back to normal post haste.
Zero interest rates are not normal, and the economy will not be able to get back to normal until the Fed gets monetary policy back to normal.
But again, it is a tool that is not as effective as simply lowering interest rates, and many observers assume the Fed will rely on it less as a tool once monetary policy gets back to normal.
But, the emergency actions and rate hikes from Turkey to India, two of the Fragile Five economies that are viewed as most at risk, suggest that it will be a bumpy course for monetary policy to get back to normal, after five years of extraordinary cash injections and 0% rates.
As monetary policy in America slowly gets back to normal, foreign investors are choosier about which countries they lend to.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com