IDEAS home Printed from https://ideas.repec.org/a/fip/fedkeb/102392.html

Introducing New Monthly Estimates of the Natural Rate of Interest and Natural Unemployment Rate

Author

Abstract

Policymakers reference the natural rate of interest (r*) to judge the tightness of monetary policy and the natural unemployment rate (u*) to gauge whether the economy is near full employment. Most estimates of these measures use quarterly data and are only updated four times per year. We introduce new monthly measures of r* and u*—the KC Fed Model-Based Natural Rate of Interest and Natural Unemployment Rate—to provide more timely data on the tightness of labor markets and stance of monetary policy.

Suggested Citation

  • Andrew Glover & Johnson Oliyide, 2026. "Introducing New Monthly Estimates of the Natural Rate of Interest and Natural Unemployment Rate," Economic Bulletin, Federal Reserve Bank of Kansas City, pages 1-3, February.
    • Handle: RePEc:fip:fedkeb:102392
    as

    Download full text from publisher

    File URL: https://www.kansascityfed.org/research/economic-bulletin/introducing-new-monthly-estimates-of-the-natural-rate-of-interest-and-natural-unemployment-rate/
    File Function: full text
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedkeb:102392. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kira Lillard (email available below). General contact details of provider: https://edirc.repec.org/data/frbkcus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.