The Asymmetric Federal Reserve Objective

Created
Sun, 09/04/2023 - 20:50
Updated
Sun, 09/04/2023 - 20:50
The Fed’s objective is asymmetric, with inflation overshoots being more costly than undershoots. Using data from the Summary of Economic Projections it shows that the Bernanke Fed was too hawkish, the Yellen Fed was too dovish, and the Fed under Jerome Powell has at times been too hawkish and too dovish.