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Monetary policy

  • Dallas Fed Economics

    Lessons from the destabilization of inflation in the 1970s

    Interest has recently increased in the question of whether the destabilization of inflation during the 1970s might repeat itself in the 2020s.

  • Dallas Fed Economics

    Domestic banks are inelastic providers of marginal funding to repo markets

    As system liquidity declines and rates of return rise, new types of participants enter repo markets as lenders, although some may not be able to reliably deploy cash in the early morning when markets are most active. The short tenor and early-morning timing of most private market repo transactions make domestic banks especially inelastic lenders in response to unanticipated demands for lending.

  • Dallas Fed Economics

    How AI debt financing impacts duration supply and interest rates

    Financing needs related to AI data center investments are likely to be large and persistent. While the overall economics of such investments remains a topic of much debate, the duration supply implications for U.S. interest rate markets have received less attention.

  • Working Papers

    Weak Instrument Bias in Impulse Response Estimators

    This paper approximates the finite-sample distribution of impulse response function (IRF) estimators that are just-identified with a weak instrument using the conventional local-to-zero asymptotic framework.

  • Dallas Fed Economics

    Global Institute presentation: Steve Kamin on the dollar’s status

    During a presentation and discussion hosted by the Global Institute last month, Steve Kamin discussed how tariffs, volatility and evolving payment technologies are challenging—but not yet dislodging—the dollar’s position as a reserve currency at the center of the global financial system.

  • Dallas Fed Economics

    A simple measure of monetary policy transmission

    The Federal Open Market Committee adjusts the stance of monetary policy primarily by changing its target range for the federal funds rate. A new measure examines rate transmission efficacy across interest rates in a variety of money markets.

  • Working Papers

    Optimal Foreign Reserve Intervention and Financial Development

    This paper documents evidence of a U-shaped relationship between financial development and the adjustments of foreign exchange reserve holdings in response to a U.S. interest rate increase.

  • Ample liquidity for a safe and efficient banking system

    Dallas Fed President Lorie Logan discusses the stance of monetary policy and how the Fed's balance sheet fosters a safe and efficient liquidity environment for the U.S. banking system.

  • Dallas Fed Economics

    Break-even employment declined after immigration changes

    Recent employment reports show U.S. payroll employment growth has cooled from its torrid pace in previous years, raising the question of whether this signals a healthy rebalancing or the start of a concerning slowdown.

  • Dallas Fed Economics

    Network structure of money markets and firms affects policy transmission

    Understanding the underlying network structure of money markets provides valuable insights for monitoring reserve scarcity and its evolution in response to regulatory and market changes.