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Keywords:interest rates OR Interest rates OR Interest Rates 

Journal Article
New limits for the New Year

FRBSF Economic Letter

Newsletter
A Dollar’s Worth: Inflation Is Real

Understanding the reality of inflation can help consumers make decisions in personal finance. Learn more about inflation, how it’s measured, and how the inflation rate is calculated in the December 2021 issue of Page One Economics: Focus on Finance.
Page One Economics Newsletter

Report
Banks' reserve management, transaction costs, and the timing of the Federal Reserve intervention

We use daily data on bank reserves and overnight interest rates to document a striking pattern in the high-frequency behavior of the U.S. market for federal funds: depository institutions tend to hold more reserves during the last few days of each "reserve maintenance period," when the opportunity cost of holding reserves is typically highest. We then propose and analyze a model of the federal funds market where uncertain liquidity flows and transaction costs induce banks to delay trading and to bid up interest rates at the end of each maintenance period. In this context, the central bank's ...
Staff Reports , Paper 109

Interest rate volatility contributed to higher mortgage rates in 2022

The Federal Reserve aggressively tightened monetary policy in 2022, responding to high and persistent inflation. The resulting borrowing cost increase for households and firms was generally anticipated. However, fixed-rate mortgage interest rates were especially sensitive to the policy regime change.
Dallas Fed Economics

Conference Paper
Designing Resilient Monetary Policy Frameworks for the Future : Economic Policy Symposium, Jackson Hole, Wyoming, August 25-27, 2016

Proceedings - Economic Policy Symposium - Jackson Hole

Working Paper
Limited Household Risk Sharing: General Equilibrium Implications for the Term Structure of Interest Rates

We present a theory in which limited risk sharing of idiosyncratic labor income risk plays a key role in determining the dynamics of interest rates. Our production-based model relates the cross-sectional distribution of labor income risk to observable aggregate labor market variables. Our model makes two key predictions. First, it predicts positive risk premia for long-term bonds while simultaneously matching key macroeconomic moments. Second, it predicts a negative correlation between current labor market conditions (as measured by labor market tightness or the job-finding rate) and future ...
FRB Atlanta Working Paper , Paper 2020-20

Report
Optimal interest rate rules and inflation stabilization versus price-level stabilization

This paper compares the properties of interest rate rules such as simple Taylor rules and rules that respond to price-level fluctuations?called Wicksellian rules?in a basic forward-looking model. By introducing appropriate history dependence in policy, Wicksellian rules perform better than optimal Taylor rules in terms of welfare and robustness to alternative shock processes, and they are less prone to equilibrium indeterminacy. A simple Wicksellian rule augmented with a high degree of interest rate inertia resembles a robustly optimal rule?that is, a monetary policy rule that implements the ...
Staff Reports , Paper 546

Journal Article
The interest cost-push controversy

An abstract for this article is not available
Economic Review , Volume 65 , Issue Jan , Pages 3-10

Journal Article
The yield curve and recessions

FRBSF Economic Letter

Speech
Interview with St. Louis Fed President James Bullard

Speech

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