A View of the Feds Policy Path Raphael Bostic President and Chief - PowerPoint PPT Presentation

A View of the Fed’s Policy Path Raphael Bostic President and Chief Executive Officer Federal Reserve Bank of Atlanta Louisiana Committee of 100 for Economic Development, Inc. Business Roundtable Baton Rouge, Louisiana October 23, 2018 1

A picture worth thinking about. "Undershooting" the Natural Unemployment Rate percent 12 Natural rate of unemployment (CBO) Civilian Unemployment Rate (U3) 10 1978:Q2 1971:Q4 1987:Q3 1964:Q3 8 1997:Q1 2005:Q4 6 “High pressure” periods, where 4 the unemployment rate falls below its natural rate. 2 0 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2 Sources: Bureau of Labor Statistics; Congressional Budget Office (CBO)

A picture worth thinking about. "Undershooting" the Natural Unemployment Rate percent 12 Natural rate of unemployment (CBO) Civilian Unemployment Rate (U3) 10 1978:Q2 1971:Q4 1987:Q3 1964:Q3 8 1997:Q1 2005:Q4 6 “High pressure” periods, where 4 the unemployment rate falls below its natural rate. 2 0 1960 1964 1968 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 2012 2016 3 Sources: Bureau of Labor Statistics; Congressional Budget Office (CBO)