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Navigating toward normal: the future for policy

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Abstract

The Federal Reserve is on track to end asset purchases in the near future and has laid the groundwork for its plan to eventually normalize monetary policy by raising short-term interest rates. The process of policy normalization is unlikely to start soon, however, and its exact timing will depend on further improvements in unemployment, wages, and inflation. This Economic Letter is adapted from a presentation by the president and CEO of the Federal Reserve Bank of San Francisco to business and community leaders in Las Vegas, Nevada, on October 9, 2014.

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  • John C. Williams, 2014. "Navigating toward normal: the future for policy," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    • Handle: RePEc:fip:fedfel:00033
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    References listed on IDEAS

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    1. Eric T. Swanson & John C. Williams, 2014. "Measuring the Effect of the Zero Lower Bound on Medium- and Longer-Term Interest Rates," American Economic Review, American Economic Association, vol. 104(10), pages 3154-3185, October.
    2. Mary C. Daly & Bart Hobijn, 2014. "Downward Nominal Wage Rigidities Bend the Phillips Curve," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 46(S2), pages 51-93, October.
    3. repec:fip:fedfsp:y:2012:i:apr4 is not listed on IDEAS
    4. John C. Williams, 2013. "Monetary policy and the recovery," Speech 124, Federal Reserve Bank of San Francisco.
    5. Atif Mian & Amir Sufi, 2013. "Aggregate demand and state-level employment," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue feb11.
    6. Jeffrey Clemens & Joshua D. Gottlieb & Adam Hale Shapiro, 2014. "How much do Medicare cuts reduce inflation?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    7. John C. Williams, 2012. "Monetary policy and the slow recovery: It’s not just about housing," Speech 101, Federal Reserve Bank of San Francisco.
    8. Daniel Aaronson & Andrew Jordan, 2014. "Understanding the Relationship between Real Wage Growth and Labor Market Conditions," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Oct.
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