Monetary Policy

This interactive activity reinforces students’ comprehension of the linkages between monetary policy and the economy.

Federal Reserve Chairman Jerome Powell confirmed Wednesday that smaller interest rate increases are likely ahead.

The Federal Open Market Committee is the Fed’s monetary policymaking body. How does the FOMC voting rotation work, and who votes at FOMC meetings?

Fed Chair Jerome Powell says curbing inflation will cause pain. Critics say putting millions out of work is unnecessary.

This issue of Page One Economics explains how Federal Reserve Bank presidents ensure the voices of 'Main Street' are reflected in monetary policy decisions.

The Federal Reserve manages interest rates — and therefore the economy — through its balance sheet, which is filled with things that make the Fed money (asse...

On Black Monday, October 28, 1929, the Dow Jones Industrial Average declined nearly 13 percent. Federal Reserve leaders differed on how to respond to the event and support the financial system.

(Bloomberg) -- Profits and losses aren’t usually thought of as a consideration for central banks, but rapidly mounting red ink at the Federal Reserve and many peers risks becoming more than just an accounting oddity.Most Read from BloombergAdidas Cuts Ties With Ye, Absorbing €250 Million Profit HitRenters Hit Breaking Point in a Sudden Reversal for LandlordsChina Stocks Slide as Leadership Overhaul Disappoints TradersCalifornia Poised to Overtake Germany as World’s No. 4 EconomyThe bond market i

15 question review game with explanations covering everything you need to know about the Ample Reserves Market Graph. For AP, IB, or College Macroeconomics.

The Summary of Economic Projections, or SEP, represents all of the FOMC participants’ projections for four key economic indicators as well as the Federal Funds Rate. Examining the SEP opens a window into what the participants are thinking as well as how that thinking changes over time. It is also a way to use current events for a statistics lesson.   EconExtra is a series of posts that go beyond the textbook, relating current events and recent developments in economics to content standards, and providing resource suggestions to help you incorporate the current events into your lessons   The Headline   Among the headlines this week following the Federal Open Market Committee meeting, press release, and press conference with Chair Powell, one key point was how much the projection for where the Federal Funds rate will end up this year (and next) increased since the last SEP in June.

In recent years, the central bank has pushed a record amount of money into the financial system—now, as it finally begins to tighten monetary policy, it may face another obstacle.

WASHINGTON (AP) — Focused on relentlessly rising prices , President Joe Biden plotted inflation-fighting strategy Tuesday with the chairman of the Federal Reserve, with the fate of the economy and his own political prospects increasingly dependent on the actions of the government’s central bank.

Inevitable adjective incapable of being avoided or evaded I heard that word a lot last week. There is now a fully formed consensus that the US, and indeed the world, now faces an inevitable recession. It can't be avoided. Central banks will have to keep hiking rates because that's the only way to kill inflation. Yes, the inflation

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?

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.