The Fed’s Shifting Perspective on the Economy and Its Implications for Monetary Policy

As any investor or executive knows, financial markets in the United States and abroad are highly sensitive to announcements from the Federal Reserve regarding its outlook for the economy and its plans to raise or lower interest rates. With such a high degree of economic uncertainty in the world today, Fed communications remain the economic tea leaves that market observers seek to interpret. Former Fed chair Ben S. Bernanke explains the recent changes in Fed thinking and what they might mean for the economy. getAbstract recommends his erudite article to Fed watchers, economists and others interested in the nuances of economic forecasting.