Fed Thoughts
Fed Thoughts: A Drama in Three Acts
Fed Thoughts White Paper
November 2024
Authors & Contributors
The curtain rises on the Federal Reserve (Fed) as it finds itself in a classic drama. The dilemma? Navigating the complexities of lowering the nominal policy rate while maintaining a stable economy amid the last mile to price stability.
The year began with the problem of balancing the dual objective of supporting economic activity while bringing inflation toward its goal. In the second act, the Fed lowered the policy rate enough to maintain a stable economic environment.
Now, we enter the third act that will put the Fed’s solution to the test. Discover how we think the final act will play out.
