Journal Article
Monetary Policy Stance Is Tighter than Federal Funds Rate
Choi, Jason; Doh, Taeyoung; Foerster, Andrew; Martinez, Zinnia (2022-11-07)
The Federal Reserve’s use of forward guidance and balance sheet policy means that monetary policy consists of more than changing the federal funds rate target. A proxy federal funds rate that incorporates data from financial markets can help assess the broader stance of monetary policy. This proxy measure shows that, since late 2021, monetary policy has been substantially tighter than the federal funds rate indicates. Tightening financial conditions are similar to what would be expected if the funds rate had exceeded 5¼% by September 2022.
FRBSF Economic Letter , Volume 2022 , Issue 30 , Pages 5

Journal Article
Why Do Net Interest Margins Behave Differently across Banks as Interest Rates Rise?
Laliberte, Brendan; Sengupta, Rajdeep (2024-03-08)
Rising interest rates can influence bank profitability positively (by increasing payments from those with floating-rate debt) or negatively (by forcing banks to offer higher returns to their depositors). Although most banks became more profitable as the Federal Reserve raised rates in 2022–23, a smaller group of banks saw consistent decreases in their net interest margins (NIMs). Understanding why these banks’ NIMs declined may provide useful insight to policymakers concerned with vulnerabilities in the banking system.Brendan Laliberte and Rajdeep Sengupta explore the differences in bank ...
Economic Review , Volume vol.109 , Issue no.1 , Pages 24