Working Paper
Raising the Inflation Target: How Much Extra Room Does It Really Give?
Schoenle, Raphael; L'Huillier, Jean-Paul (2020-06-16)
Some, but less than intended. The reason is a shift in the behavior of the private sector: Prices adjust more frequently, lowering the potency of monetary policy. We quantitatively investigate this channel across different models, based on a calibration using micro data. By raising the target from 2 percent to 4 percent, the monetary authority gets only between 0.51 and 1.60 percentage points of effective extra policy room for monetary policy (not 2 percentage points as intended). Getting 2 percentage points of effective extra room requires raising the target to more than 4 percent. Taking ...
Working Papers , Paper 20-16

Journal Article
This Time Is Different…Because We Are
Daly, Mary C. (2022-02-28)
The Federal Reserve has evolved since the “Great Inflation” of the 1970s. With new tools and a deeper understanding of the importance of transparency, it is better prepared to meet the dual mandate goals of price stability and full employment, even in challenging times.
FRBSF Economic Letter , Volume 2022 , Issue 05 , Pages 08

Speech
Monetary policy: a 'data dependent' approach: remarks at the New Jersey Bankers Association's Economic Leadership Forum, Somerset, New Jersey.
Williams, John C. (2019-01-18)
Remarks at the New Jersey Bankers Association's Economic Leadership Forum, Somerset, New Jersey.
Speech , Paper 304

Speech
Returning to Price Stability
Mester, Loretta J. (2022-08-31)
Since I last spoke at this breakfast four years ago, much has transpired. At that time, the economy was in the ninth year of an expansion; labor markets were strong; and inflation was finally moving up to our 2 percent goal after running below this goal for some time. The Fed was continuing to increase its policy rate, the fed funds rate, to be consistent with these healthy economic conditions and the outlook. The economic expansion continued for another two years, until the pandemic changed all that. The resilience shown by households and businesses over the past two challenging years has ...
Speech

Speech
Inflation, Inflation Expectations, and Monetary Policymaking Strategy
Mester, Loretta J. (2022-09-26)
Today, it is probably not surprising that I plan to speak about inflation and the appropriate strategy for monetary policy when there is uncertainty about the path of both inflation and inflation expectations.
Speech

Speech
This Time Is Different…Because We Are
Daly, Mary C. (2022-02-23)
Presentation to the Los Angeles World Affairs Council & Town Hall, Los Angeles, CA, February 23, 2022, by Mary C. Daly, President and Chief Executive Officer, Federal Reserve Bank of San Francisco.
Speech

Speech
A Bedrock Commitment to Price Stability
Williams, John C. (2022-10-03)
Remarks at the 2022 U.S. Hispanic Chamber of Commerce National Conference, Phoenix, Arizona.
Speech

Speech
The Singularity of the Dual Mandate
Daly, Mary C. (2022-09-29)
Presentation at Boise State University, Boise, Idaho, September 29, 2022, by Mary C. Daly, President and Chief Executive Officer, Federal Reserve Bank of San Francisco.
Speech

Journal Article
The Singularity of the Dual Mandate
Daly, Mary C. (2022-10-03)
Economic security depends on both jobs and stable prices. Together, these two congressionally mandated goals constitute the Fed’s dual mandate. This mandate is not a choice between two desirable things. It is a balance meant to deliver on a singular goal—a sustainable and expanding economy that works for everyone.
FRBSF Economic Letter , Volume 2022 , Issue 27 , Pages 8

Speech
Perspectives on the Economy and Monetary Policy
Collins, Susan M. (2022-11-04)
In this event, hosted by the Hutchins Center on Fiscal and Monetary Policy at Brookings, Susan Collins shared her perspectives on macroeconomic conditions and key dimensions of monetary policymaking in the current context.
Speech