From the New York Times: The Federal Reserve is wrapping up what might be the most activist year in its history with a final scheduled policy meeting this week, Dec 15-16, 2020. It is expected to leave interest rates at rock bottom and to signal continued willingness to help the economy through the challenging pandemic era. Any policy changes out of this week's gathering are expected to concentrate on the Feds large-scale bond-buying program, which began in March. ... In the coming months, the policy-setting Federal Open Market Committee a mix of governors in Washington and regional Fed presidents will have to decide whether to ramp up or dial back bond purchases from the current pace of $120 billion per month, what specifically to buy, and how to communicate when they will stop. Suppose that the FED decides to increase its monthly bond purchases to $160 billion per month. What will happen to the equilibrium fed funds rate?