Journal Article

The outlook for the economy and inflation, and the case for Federal Reserve independence


Abstract: A massive structural budget deficit threatens the long-term economic health of the United States. But the fiscal imbalance won't necessarily fuel inflation as long as the Federal Reserve retains the independence to pursue its objectives of maximum sustainable employment and price stability. The following is adapted from a presentation made by the president and CEO of the Federal Reserve Bank of San Francisco to Town Hall Los Angeles on March 23, 2010.

Keywords: economic conditions - United States; Federal Reserve System - Independence; Economic forecasting - United States; Inflation (Finance);

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Provider: Federal Reserve Bank of San Francisco

Part of Series: FRBSF Economic Letter

Publication Date: 2010

Order Number: 10