Federal Reserve
4 articles
The Fed's Evolving Toolkit for Its Dual Mandate
The Federal Reserve implements its dual mandate of maximum employment and price stability by adapting its monetary policy tools. Since the 2008 financial crisis, the Fed has transitioned from a limited-reserves system to an ample-reserves regime, now relying on administered interest rates.
The Phillips Curve and the Federal Reserve's Evolving Monetary Policy Trade-offs
The Phillips Curve, an economic model linking unemployment and inflation, is crucial for the Federal Reserve's dual mandate but has evolved significantly. Its observed flattening and the increasing importance of inflation expectations challenge traditional monetary policy trade-offs.
U.S. Q2 GDP Growth Revised Up to 2.2% Amid Strong Consumer Spending and Business Investment
The U.S. economy's Q2 2026 GDP growth was revised upward to 2.2%, primarily fueled by robust consumer spending and significant business investment in areas like AI infrastructure. This stronger-than-expected performance indicates economic resilience amidst Federal Reserve rate hikes.
Understanding the Federal Reserve's Quantitative Tightening Policy
Quantitative Tightening (QT) is a Federal Reserve monetary policy tool designed to shrink its balance sheet and reduce liquidity in the banking system. It operates as the inverse of Quantitative Easing (QE), allowing bonds to mature without reinvestment to put upward pressure on long-term interest rates and cool the economy.