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How Should the Fed Respond to Supply Shocks?
Original: How Should the Fed Respond to Supply Shocks? Plus, An Inside Story on What Happens at FOMC Meetings
The Hoover Institution has released a discussion examining how the Federal Reserve should respond to supply shocks, pairing the policy question with an inside account of what takes place during Federal Open Market Committee meetings. The piece weighs whether the central bank should look through price pressures driven by supply disruptions rather than tighten policy, and offers a rare window into FOMC deliberations.
Why now: Interest rate policy and the Fed's handling of inflation remain hotly debated amid ongoing supply-side price pressures.
Federal ReserveHoover InstitutionFOMC
Evidence
- How Should the Fed Respond to Supply Shocks? Plus, An Inside Story on What Happens at FOMC Meetings · Hoover Institution · 165K
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