2021 in the Rearview: December FOMC Recap
To understand how the Fed is interpreting its “maximum employment” mandate in the current context, it’s worth going through Chair Powell’s remarks and Q&A for the December FOMC meeting.
Federal Reserve
15 postsA Credible, Broad and Inclusive Approach to Maximum Employment
Critical to the Fed successfully achieving maximum employment over the short run and the longer run is a commitment to, and a communication of, “maximum employment” that is Credible, Broad, and Inclusive.
Closing In On A Key Milestone For The Fed's "Maximum Employment" Forward Guidance
If the Fed wants to stay true to the "maximum employment" component of its forward guidance, and the "broad and inclusive" nature of that goal, it is imperative that their interest rate policy actions reflect a full recovery on both of these measures.
QE Magic, Used Cars, and Omicron: Tapering While Preserving Optionality
The policy mistake worth worrying about isn’t the speed of taper per se; it's the signal that taper sends about the timing of liftoff in interest rate policy.
Offsetting Persistent Inflationary Pressures With Disinflationary Healthcare Policy
Healthcare policy interventions could provide downward pressure on core PCE both in 2022 and in the years ahead. Given the salience of inflation, disinflationary healthcare policies should be a key priority for Congress and the Biden Administration alike.
