Study shows Fed's words impact on economy

The Federal Reserve's strategy adopted in the summer of 2003 for stimulating the U.S. economy without cutting interest rates was a clear success, researchers at the Fed have concluded in a new study.

The study, led by Fed Governor Ben Bernanke, found that the central bank managed to exert powerful effects on interest rates just by promising to keep the key short-term federal funds rate low for a "considerable period." Those influences were at least five times stronger than the average effect o