While the CBO’s (Congressional Budget Office) 2018-2028 report presents federal budget projections, the numbers also reflect the tradeoffs and some tough decisions.
With the cost of yesterday’s Memorial Day BBQ almost the same as last year, the Fed has minimal inflation evidence on which to base its next rate hike.
Showing the connection between inflation and unemployment, the Phillips Curve has been re-interpreted, re-affirmed and condemned as a monetary policy tool.
With the timing of the first Fed rate hike still a mystery, we can use the FOMC (Federal Open Market Committee) dot plots to predict when rates will rise.
Including the unemployment, quits and participation rates, Janet Yellen’s labor market indicators will help her decide whether to raise interest rates.
Coping with hyperinflation, Zimbabwe finally had to replace their currency with the US. dollar. A low inflation rate should be their monetary policy goal.
In the 2009 transcripts, Federal Reserve humor brings smiles and memories of the dire condition of finance, housing and the GDP.
As the source of monetary policy, the Federal Reserve has to decide if interest rates should rise when inflation is low but a jobs recovery has begun.
Because the Congress established a dual mandate of high employment and price stability for the Federal Reserve’s monetary policy, they created a dilemma.