Supply Side
This is the final post in our multi-part series on the Fed's 2025 framework review and strategy for dealing with supply shocks. Part 1 discusses how the Fed can deal with tariff inflation risks, Part 2 discusses the implications of recent productivity dynamics, Part 3 discusses the Fed&
If inflation feels virtually nonexistent to some, that may soon change. The May CPI release showed a much slower pace of price increases than expected. Some of that reflects lagged effects to housing components of inflation relative to events that transpired 2-3 years ago. And it is also true that
This is the fourth post in our multi-part series on the Fed's 2025 framework review. Part 1 discusses how the Fed can deal with tariff inflation risks, Part 2 discusses the implications of recent productivity dynamics, and Part 3 discusses the Fed's inflation and supply shock
This is the third post in our multi-part series on the Fed's 2025 framework review. Part 1 can be found here and Part 2 can be found here. The Fed has an opportunity to learn valuable lessons and apply those lessons in a forward-looking manner. By revising its
This is the second post in our multi-part series on the Fed's 2025 framework review. Part 1 can be found here. The Fed has an opportunity to learn valuable lessons and apply those lessons in a forward-looking manner. By revising its framework accordingly, Fed policy can be more
Summary The post-pandemic period was marked by global forces that raised inflation across all developed economies. Dominant explanations of inflation should be of a similarly global character. Policy discussions that reckon with counterfactuals and explainable magnitudes must go beyond nation-specific policies and dynamics. While local policies always shape inflation outcomes
Today's data largely confirmed what we've known for some time now: the Fed's restrictive policies are restricting the level and growth of homebuilding activity in the US economy. But when we think holistically about the relevance of homebuilding to price stability, the restrictive effects
In this piece, we take a deeper dive into the finer details of the national accounts to gain some insight into how exactly monetary policy is restricting investment.
