Economic Commentary

ECONOMY AND POLICY August 28, 2020 Chief Economist Scott Brown discusses current economic conditions. The shift in the Fed’s monetary policy framework was simultaneously a big deal and not much at all. In Chair Powell’s own words, the changes “add up to a robust updating of our monetary policy framework.” However, “to an extent, these revisions reflect the […]

ECONOMY AND POLICY August 28, 2020 Chief Economist Scott Brown discusses the latest market data. The Fed updated its monetary policy framework, moving to a flexible average inflation target. That means that the central bank will target an average inflation rate of 2% (as measured by the PCE Price Index) over time. A period of […]

ECONOMY AND POLICY August 21, 2020 Chief Economist Scott Brown discusses the latest market data. In the minutes of the July 28-29 FOMC meeting, participants expected no change in policy rates anytime soon, but officials saw a need for more clarity regarding the likely path, such as adopting output-based forward guidance. Residential construction figures rose […]

ECONOMY AND POLICY August 14, 2020 Chief Economist Scott Brown discusses current economic conditions. Brief summaries of key elements in the economic outlook. The Big Picture: The overall economic outlook depends on the virus, efforts to contain it, and the degree of fiscal support. We’ve had a sharp- but-partial rebound in May and June, following a […]