The Federal Open Market Committee raised the target range for the federal funds rate above the Effective Lower Bound in March 2022 for the first time since March 2020 and projected six more rate increases in 2022. The Committee’s actions follow the August 2020 revised Statement on Longer-Run...

The Federal Open Market Committee’s revised Statement on Longer-Run Goals and Monetary Policy Strategy implements flexible average inflation targeting and mitigates shortfalls, rather than deviations, of employment from its maximum level. We first show how the Taylor, balanced approach, and...

The Taylor rule has been the dominant metric for monetary policy evaluation over the past 20 years, and it has become common practice to identify periods where policy either adheres closely to or deviates from the Taylor rule benchmark. The purpose of this paper is to identify (Taylor)...