Hmmm . . . 2.1% What’s that you ask? GDP Well, not GDP, but GDPNow, that contemporaneous figure the Federal Reserve Bank of Atlanta prepares. Kind of a real-time distillation of economic data that tells you how things are going. A mercury thermometer if you will, maybe a turkey thermometer to tell you whether we’re over/undercooking the economy. Lately? The ...
Thank you, Mark, and thank you for the opportunity to be part of the discussions today.1 For more than 40 years, the Stanford Institute for Economic Policy Research has assisted economic policymakers by producing sharp analysis and fostering the kind of constructive dialogue reflected in today's agenda. My topic today is the Federal Reserve's dual mandate of maximum employment and stable prices—and, specifically, the tradeoffs that sometimes arise when pursuing these two objectives. I say "sometimes" because there have been times and certain economic conditions in which such tradeoffs did not arise—or at least were not apparent. This distinction is an important one, especially when considering the Federal Open Market Committee (FOMC)'s recent progress in reducing high inflation while the labor market has remained strong. Better understanding the tradeoffs, or lack thereof, in pursuing the dual mandate will help researchers and policymakers draw lessons from these welcome recent developments. post: Fed’s Kugler: Optimistic Disinflation Progress Will Continue