When Might the Federal Funds Rate Lift Off? Computing the Probabilities of Crossing Unemployment and Inflation Thresholds
Abstract: The Federal Open Market Committee has been providing guidance to help markets anticipate when it will begin raising the federal funds rate target. The most recent guidance suggests that the target will not change at least until after an unemployment or infl ation threshold is breached. We use a forecasting model to estimate when these thresholds are likely to be breached. We also consider how an infl ation fl oor would affect the timing of liftoff.
File format is application/pdf
Description: Full text
Provider: Federal Reserve Bank of Cleveland
Part of Series: Economic Commentary
Publication Date: 2013
Order Number: 19