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Discussion Paper
Measurement of “Computer Software and Accessories” Inflation
From November 2025 to March 2026, the "Computer Software and Accessories" category of the Personal Consumption Expenditures (PCE) price index made an unprecedented contribution to the rise in core and core goods inflation. Figure 1 shows the historical average since 2000 for core and core goods inflation while excluding software (blue bars) along with the contribution of software (gray bars).
Working Paper
A User’s Guide to Reducing the Federal Reserve’s Balance Sheet
For the avoidance of doubt: 1) This catalogue presents and analyzes a variety of options for reducing the Federal Reserve’s balance sheet. Nothing here is an endorsement of any specific policy option; this is a menu of options. Combined, we estimate these options open the door to balance sheet reduction of $1.2 to $2.1 trillion within the Fed’s current ample reserves framework. Further reductions would be possible with a return to scarce reserves. 2) The process of materially shrinking the balance sheet would require a great deal of implementation and rulemaking work in advance and will ...