Operational Target


DEFINITION of 'Operational Target'

Monetary policy objective specified by the Federal Reserve. Operational targets are usually phrased in terms of the changes in the money supply and non-borrowed reserves. These targets are usually reported by the chairman of the Federal Reserve.

BREAKING DOWN 'Operational Target'

Operational targets are reported twice a year to Congress. Projected growth is stated as a range within a fiscal year. The reporting requirements for operational targets are specified in the Full Employment and Balanced Growth Act of 1978.

  1. Monetary Policy

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  2. Federal Reserve Bank

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  3. Money Supply

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  4. Credit

    1. A contractual agreement in which a borrower receives something ...
  5. Federal Reserve Board - FRB

    The governing body of the Federal Reserve System. The seven members ...
  6. Deficit

    The amount by which a resource falls short of a mark, most often ...
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