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14 posts on "FOMC"
January 13, 2022

The Fed’s Latest Tool: A Standing Repo Facility

In July 2021, the Federal Open Market Committee announced a new tool for monetary policy implementation: a domestic standing repurchase agreement facility. In the last post of this series, we explain what this new tool is and how it will support the effective implementation of monetary policy in the floor system through which the Fed implements policy.

January 6, 2022

The Effect of Monetary and Fiscal Policy on Inequality

How does accounting for households’ heterogeneityand in particular inequality in income and wealth—change our approach to macroeconomics? What are the effects of monetary and fiscal policy on inequality, and what did we learn in this regard from the COVID-19 pandemic? What are the implications of inequality for the transmission of monetary policy, and its ability to stabilize the economy? These are some of the questions that were debated at a recent symposium on “Heterogeneity in Macroeconomics: Implications for Policy” organized by the new Applied Macroeconomics and Econometrics Center (AMEC) of the New York Fed on November 12.

December 18, 2020

How Did Market Perceptions of the FOMC’s Reaction Function Change after the Fed’s Framework Review?

Survey data reveal a notable shift in market participants’ perceptions of the FOMC’s policy rate “reaction function” in the direction of higher expected inflation and lower expected unemployment ahead of the next rate “liftoff.”

August 20, 2020

Market Function Purchases by the Federal Reserve

This post describes efforts taken by the Federal Reserve to support and sustain the Treasury and MBS markets following the COVID-19 outbreak as well as prior “market functioning” interventions in 1939, 1958, and 1970.

April 15, 2020

The COVID-19 Pandemic and the Fed’s Response

In this post, the authors review the Fed’s action following the coronavirus outbreak, and compare it with the response to the 2007-09 financial crisis.

April 6, 2020

How the Fed Managed the Treasury Yield Curve in the 1940s

The coronavirus pandemic has prompted the Federal Reserve to pledge to purchase Treasury securities and agency mortgage-backed securities in the amount needed to support the smooth market functioning and effective transmission of monetary policy to the economy. But some market participants have questioned whether something more might not be required, including possibly some form of direct yield curve control. In the first half of the 1940s the Federal Open Market Committee (FOMC) sought to manage the level and shape of the Treasury yield curve. In this post, we examine what can be learned from the FOMC’s efforts of seventy-five years ago.

May 8, 2019

Ten Years Later—Did QE Work?

By November 2008, the Global Financial Crisis, which originated in the residential housing market and the shadow banking system, had begun to turn into a major recession, spurring the Federal Open Market Committee (FOMC) to initiate what we now refer to as quantitative easing (QE). In this blog post, we draw upon the empirical findings of post-crisis academic research–including our own work–to shed light on the question: Did QE work?

November 26, 2018

The Pre-FOMC Announcement Drift: More Recent Evidence

We had previously documented large excess returns on equities ahead of scheduled announcements of the Federal Open Market Committee (FOMC)—the Federal Reserve’s monetary policy-making body—between 1994 and 2011. This post updates our original analysis with more recent data. We find evidence of continued large excess returns during FOMC meetings, but only for those featuring a press conference by the Chair of the FOMC

Posted at 7:00 am in Financial Markets, FOMC | Permalink | Comments (0)
September 22, 2017

Just Released: A Monthly Underlying Inflation Gauge

Today marks the launch of the monthly publication of the Underlying Inflation Gauge (UIG). We are reporting two UIG measures, described recently on Liberty Street Economics, that are constructed to provide an estimate of the trend, or persistent, component of inflation. One measure is derived using a large number of disaggregated price series in the consumer price index (CPI), while the second measure incorporates additional information from macroeconomic and financial variables.

September 9, 2013

Preparing for Takeoff? Professional Forecasters and the June 2013 FOMC Meeting

Following the June 18-19 Federal Open Market
Committee (FOMC) meeting different measures of short-term interest rates
increased notably.

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Liberty Street Economics features insight and analysis from New York Fed economists working at the intersection of research and policy. Launched in 2011, the blog takes its name from the Bank’s headquarters at 33 Liberty Street in Manhattan’s Financial District.

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