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.
2019-06-13 10:26:00 Thursday ET
The Chinese Xi administration may choose to leverage its state dominance of rare-earth elements to better balance the current Sino-U.S. trade war. In recent
2019-01-06 08:39:00 Sunday ET
President Trump signs an executive order to freeze federal employee pay in early-2019. Federal employees face furlough or work without pay due to the govern
2018-01-25 08:32:00 Thursday ET
After its flagship iPhone X launch, Apple reports its highest quarterly sales revenue over $80 billion in the tech titan's 41-year history. Apple expect
2017-07-13 08:35:00 Thursday ET
President Donald Trump has announced that a major Apple iPhone upstream supplier, Foxconn Technology Group (aka Hon Hai Precision Group), will invest $10 bi
2024-04-30 09:30:00 Tuesday ET
With clean and green energy resources and electric vehicles, the global auto industry now navigates at a newer and faster pace. Both BYD and Tesla have
2023-05-28 10:24:00 Sunday ET
Thomas Piketty connects the dots between economic growth and inequality worldwide with long-term global empirical evidence. Thomas Piketty (2017) &nbs