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Monetary policy

  • Research Department Working Papers

    Trade Costs and Inflation Dynamics

    Using bilateral trade flows from detailed global input-output data and a gravity framework, this paper estimates trade cost shocks and their effects on CPI inflation.

  • Evidence suggests U.S. house price/rent ratio, real home prices to decline

    The ratio of house prices to rents in the U.S. has risen 20 percent since first quarter 2020, coinciding with the beginning of the pandemic. The ratio is near its previous high in 2006. The future course of inflation may well be influenced by how this now-lofty ratio reverts to a more usual level.

  • Speech by President Lorie K. Logan

    Efficient and effective central bank balance sheets

    At a Bank of England conference on central bank balance sheets, President Lorie Logan laid out two key principles: efficient and effective. It’s heartening that central banks around the world have converged on some approaches to uphold these twin principles.

  • Is inflation still slowing? Early 2025 data pivotal to outlook

    January inflation data were stronger in 2023 and 2024 than forecasters expected, even after more encouraging results had been reported for the ends of 2022 and 2023. Rather than reflecting seasonal adjustment difficulties, this pattern may be caused by a large share of firms changing prices at the start of a new year.

  • Speech by President Lorie K. Logan

    Opening remarks for panel on ‘Future challenges for monetary policy in the Americas’

    At the Bank for International Settlements’ Chapultepec Conference, Dallas Fed President Lorie K. Logan discussed future challenges for monetary policy in the Americas and the role of the neutral interest rate.

  • Research Department Working Papers

    Dynamics of Market Power in Monetary Economies

    This paper studies the dynamic interplay between monetary policy and market power in a decentralized monetary economy. Building on Choi and Rocheteau (2024), its key innovation is to model rent seeking as a process that takes time, allowing market power to evolve gradually.

  • Speech by President Lorie K. Logan

    Navigating in shallow waters: Monetary policy strategy in a better-balanced economy

    After a voyage through rough waters, the shore is in sight: the FOMC’s Congressionally mandated goals of maximum employment and stable prices. But the ship hasn't tied up yet, and risks remain that could push the economy back out to sea or slam it into the dock too hard.

  • Research Department Working Papers

    Monetary Policy Interactions: The Policy Rate, Asset Purchases and Optimal Policy with an Interest Rate Peg

    This paper studies monetary policy in a New Keynesian model with a variable credit spread and scope for central bank asset purchases to matter.

  • Speech by President Lorie K. Logan

    Welcoming remarks for the Women in Central Banking Workshop

    Remarks delivered at the Women in Central Banking Workshop hosted at the Dallas Fed in collaboration with Norges Bank.

  • International factors broadly explain postpandemic inflation

    The recent co-movement of inflation across countries, including the U.S., can be explained in part by global and regional factors. Policymakers, who have tended to more closely look closer to home may want to more broadly consider global events and pressures when addressing changing inflation pressures.