2018-03-21 06:32:00 Wed ET
federal reserve monetary policy treasury dollar employment inflation interest rate exchange rate macrofinance recession systemic risk economic growth central bank fomc greenback forward guidance euro capital global financial cycle credit cycle yield curve
Fed Chair Jerome Powell increases the neutral interest rate to a range of 1.5% to 1.75% in his debut post-FOMC press conference. The Federal Reserve raises the interest rate for the sixth time since the Federal Open Market Committee (FOMC) near-zero rate lift-off in December 2015. The Fed Chair transition from Yellen to Powell indicates a moderate monetary policy regime switch from dovish to hawkish in accordance with the recent FOMC minutes.
The Federal Reserve now targets a core PCE inflation rate above 2.1% as the U.S. unemployment rate gradually declines to the lowest level of 3.8%-4.1% in 17 years. Most dynamic stochastic general equilibrium (DSGE) New Keynesian economic models suggest that Powell has to trade off near-full employment with inflationary momentum. As inflation picks up over time, Powell must gradually raise the neutral interest rate to tame upward price gyrations when the U.S. economy operates near full employment.
Former Fed Chair Janet Yellen might prefer to keep the lower interest rate for a longer period of time, whereas, Powell departs from this lower-for-longer dovish and accommodative monetary policy stance in response to key FOMC hawks who express deep concerns about high inflation or price instability.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2024-02-05 11:26:00 Monday ET
China poses new economic, technological, and military threats to the U.S. and many western allies. In the U.S. government assessment, China poses new eco
2020-08-19 10:32:00 Wednesday ET
Corporate strategies, portfolio choices, and management memes add value and drive business process improvements over time. Andrew Campbell, Jo Whitehead,
2019-02-05 10:32:00 Tuesday ET
President Trump remains optimistic about the Sino-American trade war resolution of both trade deficit eradication and tech transfer enforcement. Trump now s
2024-05-05 10:31:00 Sunday ET
Stock Synopsis: Pharmaceutical post-pandemic patent development cycle In terms of stock market valuation, the major pharmaceutical sector remains at its
2023-11-07 11:31:00 Tuesday ET
Joel Mokyr suggests that economic growth arises from a change in cultural beliefs toward technological progress. Joel Mokyr (2018) A culture
2022-04-15 10:32:00 Friday ET
Corporate investment management This review of corporate investment literature focuses on some recent empirical studies of M&A, capital investm