An Update on the U.S. Economy and Monetary Policy
Abstract: In my remarks three years ago, I characterized 2019 as a year of transition for the economy and monetary policy. At that time, economic growth was expected to transition to a more sustainable pace after above-trend growth in 2018, and we were completing a monetary policy transition that had been underway for some time: a transition away from the emergency monetary policy settings needed in the wake of the Great Recession to more normal policy. Today, we are at the start of another monetary policy transition, this time away from the extraordinary accommodation that was necessary earlier in the pandemic. I will spend my time discussing the economic rationale for the transition and the implications for monetary policy going forward. As a reminder, the views I present today will be my own and not necessarily those of the Federal Reserve System or of my colleagues on the Federal Open Market Committee.
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Description: Full Text
Provider: Federal Reserve Bank of Cleveland
Part of Series: Speech
Publication Date: 2022-02-24