Monetary Policy

At a March 2022 Hutchins Center event, BlackRock's Isabelle Mateos y Lago shared her thoughts on how Fed Chair Jerome Powell and other central bankers might think and act on climate change most effectively.

For every Republican economist the system employs, it has more than 10 Democrats.

The Federal Reserve has traditionally focused on monetary policy and bank regulation, but some are calling for the Fed to address other issues, such as climate change and economic inequality. But further politicization of the Fed would be dangerous and counterproductive, reducing Fed independence and leading to more economic instability. The Fed should instead focus exclusively on monetary policy and leave political issues to Congress.

The FOMC announced it will begin reducing the size of the Fed’s balance sheet in June 2022. How will such reduction work, and how long will it continue?

The Federal Reserve on Wednesday showed that it intends to achieve price stability, maximum sustainable employment and long-term growth despite the risk of a higher unemployment and a hard landing of…

For the vast majority of countries, interest rates are marching upward. Here’s how they break down in 2022.

WASHINGTON (AP) — The Federal Reserve launched a high-risk effort Wednesday to tame the worst inflation since the early 1980s, raising its benchmark short-term interest rate and signaling up to six additional rate hikes this year.

St. Louis Fed President James Bullard cautioned that without action on interest rates, inflation could become an even more serious problem.

But central bank officials say economy has changed since high-inflation days of the 1970s.

This post describes the mechanics behind quantitative tightening and reviews the Fed's prior QT experience.

Step-by-Step mechanics of quantitative easing

The Federal Reserve on Wednesday indicated it could soon will raise interest rates for the first time in more than three years.

Now, the question is how many rate hikes will this year bring?

High inflation and near-full employment will push the Fed to raise rates more quickly than expected, according to Goldman Sachs.

Turkey's lira has logged its worst year since President Tayyip Erdogan came to power nearly two decades ago, despite his appeal on Friday for Turks to trust his unorthodox policies of slashing interest rates in the face of soaring inflation.

Until we see Powell in a pair of Nike Zooms, we can safely assume the economists mean something else

The Federal Reserve could decide to speed up the end of its bond buying and signal that it expects to start hiking interest rates in 2022.

ANKARA, Turkey (AP) — The Turkish currency weakened by some 10% against the U.S. dollar Tuesday, a day after President Recep Tayyip Erdogan insisted there would be no turning back from his unconventional policy of cutting interest rates despite high inflation .

The Fed left interest rates near zero on Wednesday but announced plans to start removing some of the support it has provided to the economy as inflation hits its highest point in 30 years.

The Federal Reserve is dealing with high inflation at a time when millions of workers remain on the job market’s sidelines. Wednesday’s announcement that it will slow bond purchases is a step toward more normal monetary policy.

Until we see Powell in a pair of Nike Zooms, we can safely assume the economists mean something else

Billionaire hedge fund manager Bill Ackman called for the Fed to begin reining in the support it has provided for the U.S. economy.

How has the Fed's policy framework changed?

Low interest rates are one reason that the housing market has taken off. They are far from the only one.

Traditionally, finance textbooks have taught the concept of arbitrage through a number of disparate examples often presented in different sections or chapters. ...

How currency debasement, soaring costs, and overtaxing helped lead to the collapse of Ancient Rome's economy and empire.

Federal Reserve officials are debating what to do as price risks loom, even as its leaders and the White House say today’s surge will most likely cool.