Key Points: In the midst of the Great Recession, the FOMC projected that the employment rate would be between 4.7% and 4.9% in 2009. In fact, the unemployment rate rose to 9.9% in 2009.Read More
The Data that Drives Policy Lives Here.
THE FED’S FAILURE TO PROJECT UNEMPLOYMENT
Key Points: In October 2007, as the Great Recession was about to begin, the FOMC projected that the employment rate would be between 4.8% and 4.9% in 2008. In fact, the unemployment rate rose to 7.8% in 2008.Read More
THE FED’S FAILURE TO PROJECT INFLATION
Key Points: For the last decade, the Federal Open Market Committee (FOMC) has set itself an inflation target of 2% — a goal it has extraordinary power to control. Yet, year after year, the FOMC has never successfully delivered on that target. In December of 2020, the FOMC projected inflation would be 1.8%. After Congress […]Read More