Policymakers at the Federal Reserve on Wednesday signaled that the worst of the pandemic-induced recession had passed as its summary of economic projections and “dot plot” rate forecast both implied that the zero interest-rate policy would remain in place throughout the central bank’s forecast horizon ... READ MORE >
monetary policy
The post-coronavirus economy: What to expect, and what is needed
We think that the U.S. economy has ended its pandemic-induced free fall. Tentative signs of the recession’s nadir are evident in near real-time data across the economy. It is now time to begin considering the shape of the post-pandemic economy: What it will look like, whose interests are given ... READ MORE >
Powell’s statement is a necessary first step in addressing the coronavirus fallout
Federal Reserve Chairman Jerome Powell made a well-directed and much-needed statement on Friday, maintaining the possibility of a cut by the central bank in interest rates, in an attempt to take back control of the narrative on the Fed's response to the coronavirus outbreak. Powell's remarks, ... READ MORE >
How the Fed responds to economic downturns
Since the 1970s, the Federal Reserve has relied on manipulating expectations of short-term interest rates through cuts in its overnight policy rate in response to economic and manufacturing slowdowns. Reducing interest rates is thought to facilitate investment, which is necessary for economic growth and ... READ MORE >