Fed’s new framework has had little impact on expectations – NBER paper

Early evidence suggests few people heard the announcement and fewer understood it

US Federal Reserve
Photo: US Federal Reserve

Early survey data on the impact of the Federal Reserve’s new average inflation-targeting (AIT) framework suggests few people understood the announcement, casting doubt on the central bank’s ability to shift inflation expectations.

In a working paper published by the National Bureau of Economic Research, Olivier Coibion, Yuriy Gorodnichenko, Edward Knotek and Raphael Schoenle use a daily survey of US households to study the effect of the policy’s announcement on August 27.

The authors note

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account