Reported 12 months ago
Amid surprising post-pandemic economic recoveries leading to fluctuating interest rate expectations, Federal Reserve officials are considering the benefits of using 'scenarios' to communicate potential policy responses to various economic outcomes beyond their baseline forecasts. The concept has gained traction after former Fed Chair Ben Bernanke recommended its use, with officials like Raphael Bostic and Mary Daly employing scenarios to outline different economic paths. While some officials advocate for more detailed forecasts, the implementation of scenarios could provide more transparency and insight into the Fed's policy intentions.
Source: YAHOO