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Working Paper
Households' Preferences Over Inflation and Monetary Policy Tradeoffs
We document novel facts about US household preferences over inflation and monetary policy tradeoffs. Many households were attentive to news about monetary policy and to interest rates in 2023. The median household perceives the Federal Reserve's inflation objective to be 3 percent, but would prefer it to be lower. Quantifying the tradeoff between inflation and unemployment, we find an average acceptable sacrifice ratio of 0.6, implying that households are likely to find disinflation costly. Average preferences are well represented by a non-linear loss function with near equal weights on ...
Report
Shaping the Future of Work: Workers’ Optimism and Pessimism about AI
The artificial intelligence (AI) revolution is here and is expected to transform the labor market, creating new opportunities for some workers while eliminating the jobs of others. At the end of 2024, the authors of this brief surveyed a sample of US household heads working in different industries and with different educational backgrounds to better understand how they view AI and its potential effects on their job prospects and financial well-being.