FOMC: blue chips and unemployment key indicators

Federal Open Market Committee members are more concerned with so-called "blue-chip" inflation expectations than with lagged actual inflation or analysts' inflation expectations, a new paper form the Dallas Federal Reserve finds.

The paper also shows that the unemployment rate is a more frequently used measure of slack in the economy by policymakers than either detrended real GDP or detrended industrial production.

To read the paper, click here

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