President James Bullard welcomed attendees to a symposium on child savings accounts, co-hosted by the Federal Reserve Bank of St. Louis and Washington University in St. Louis. Noting the importance of saving, saving early and saving often, he said that households can accomplish all three by making sure that every child has his or her own savings account.
In a speech to the Shadow Open Market Committee in New York, St. Louis Fed President James Bullard discussed the orthodox view of current monetary policy, which emphasizes that the FOMC's objectives are close to being met while monetary policy settings remain far from normal, along with three challenges to that view, which relate to strict inflation targeting, low real interest rates and globalization. He concluded that the U.S. economy will likely experience better outcomes if the monetary policy orthodoxy is preserved as the guiding principle.
Economist Stephen Williamson writes about the unconventional monetary policies used by the Fed in the wake of the Great Recession, particularly quantitative easing, ZIRP (zero-interest-rate policy) and forward guidance. His observations are part of a broader review of what’s worked and what hasn’t for central banks around the world over the years.
The level of education determines a worker’s earnings to a large degree, and this simple study of cohorts of workers over the decades illustrates how the “lifetime education premium” is becoming more valuable than ever.
Oil prices and inflation expectations sometimes move in tandem. A close look at three types of shocks to oil prices suggests that not all shocks relate to inflation expectations in the same manner.
Changes in income of rich and poor households might overstate changes in welfare because the cost of goods favored by the rich is rising faster than the cost of goods consumed mainly by the poor and middle class.