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Monetary policy

  • Speech by President Lorie K. Logan

    Opening remarks for moderated conversation at the World Affairs Council of San Antonio

    Dallas Fed President Logan's base case is that monetary policy needs to hold tight for a while longer to bring inflation sustainably back to target, but she believes it's also quite plausible that some combination of softer inflation and a weakening labor market will call for lower rates fairly soon.

  • Research Department Working Papers

    An Asset-Liability Management Approach to the Federal Reserve Balance Sheet

    The Federal Reserve’s liabilities include a mix of floating-rate instruments, such as reserves, and long-duration, non-interest-bearing instruments, such as currency. This paper investigates the implications of an asset-liability management approach to choosing assets to back these liabilities, with a focus on matching the duration of assets and liabilities.

  • Speech by President Lorie K. Logan

    Opening remarks for Fed Listens

    Dallas Fed President Lorie Logan spoke ahead of a Fed Listens roundtable in El Paso, part of an event series to hear from people across the country about how the Fed's monetary policy framework affects businesses and communities.

  • Speech by President Lorie K. Logan

    Opening remarks for conversation at Greater Waco Chamber

    President Lorie Logan delivered remarks on how the Federal Reserve's federated structure and monetary policy independence serve the country.

  • Has the Beige Book become disconnected from economic data?

    The Federal Reserve's Beige Book, a key tool for identifying U.S. business-cycle shifts, has traditionally aligned with economic data. However, postpandemic, its economic characterizations often appear weaker than what hard data indicated, raising concerns of divergence from official statistics.

  • Speech by President Lorie K. Logan

    Opening remarks for panel titled ‘The increasing role of nonbank institutions in the Treasury and money markets’

    As moderator of a panel discussion, Dallas Fed President Logan gathered industry experts’ views on the role of nonbank institutions in Treasury and money markets and how to enhance these markets’ resilience.

  • Monetary policy implementation and the consolidated government balance sheet

    This essay examines the trade-offs between different monetary policy implementation methods through the lens of the consolidated government balance sheet and income statement

  • Research Department Working Papers

    Tempting FAIT: Flexible Average Inflation Targeting and the Post-COVID U.S. Inflation Surge

    In August 2020, the Federal Reserve replaced Flexible Inflation Targeting (FIT) with Flexible Average Inflation Targeting (FAIT), introducing make-up strategies that allow inflation to temporarily exceed the 2% target. Using a synthetic control approach, this paper estimates that FAIT raised CPI inflation by about 1 percentage point and core CPI inflation by 0.5 percentage points, suggesting a moderate impact net of food and energy and a largely temporary effect. The findings are consistent with the hypothesis of a steeper-than-expected post-pandemic Phillips curve in the New Keynesian model.

  • Globalization Institute Working Paper

    Living Up to Expectations: The Effectiveness of Forward Guidance and Inflation Dynamics Post-Global Financial Crisis

    This paper studies the effectiveness of forward guidance when central banks face private agents with heterogeneous expectations allowing for a degree of bounded rationality.

  • Strong U.S. employment driven by sectors less sensitive to business cycles

    The U.S. has enjoyed strong payroll job gains in the past couple of years despite generally restrictive monetary policy. The sectoral composition of employment reveals job growth has been concentrated in areas that are the least sensitive to national employment fluctuations over the business cycle.