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FOMC forecasts and economic policy uncertainty

Author

Listed:
  • Dandan Liu

    (Kent State University)

  • Michael A Ellis

    (Kent State University)

Abstract

This paper investigates the influence of economic policy uncertainty on Federal Open Market Committee (FOMC) meeting participants' economic forecasts. We find evidence that during periods when the public had increased uncertainty about economic policy there was little change in the dispersion of views by FOMC meeting participants about the future path of inflation, consistent with increased emphasis on inflation objectives prior to formal inflation targeting. In contrast, there was increased dispersion of FOMC unemployment rate forecasts.

Suggested Citation

  • Dandan Liu & Michael A Ellis, 2021. "FOMC forecasts and economic policy uncertainty," Economics Bulletin, AccessEcon, vol. 41(2), pages 213-221.
    • Handle: RePEc:ebl:ecbull:eb-20-00782
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2021/Volume41/EB-21-V41-I2-P20.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Çağlayan Aslan & Şenay Açikgöz, 2025. "Technology Level Exports, Global Economic Policy Uncertainty, and the Role of Government: A Panel Svar Analysis," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(6), pages 18805-18830, December.

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    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit

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