Historical Context of Inflation Decline and Federal Reserve Policy
- Reports
- 4
- Developments
- 3
- Repetition
- 50%
New informationRepeats or wire copies
What happened
Ben Bernanke recounted research presented to the Federal Reserve in December 1996 by John Campbell and Robert Shiller, who argued that stocks were overvalued. This discussion took place while Alan Greenspan raised concerns about “irrational exuberance”. The reports also noted that annual-average U.S. consumer price inflation declined from 13.5% in 1980 to 3.2% in 1983.
From econotimes.com
Why it matters
Inflation trends influence the Federal Reserve's rate decisions, which are guided by economic indicators provided by the Bureau of Labor Statistics. The historical record shows that as inflation fell, the Federal Reserve pursued policies that led to rising unemployment.
Inflation data influences Fed rate decisions.
From econotimes.com
Who's involved
- Ben BernankeAmerican economist who recounted historical research presented to the Federal Reserve
- Alan GreenspanAmerican economist who raised questions about 'irrational exuberance' in 1996
- FEDThe US Central Bank that receives economic indicators and guides monetary policy
- Bureau of Labor StatisticsUS government agency that provides essential economic indicators to the Federal Reserve
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Federal Open Market CommitteeSpeculative
The Federal Open Market Committee might gain more policy flexibility as inflation declines.
- NasdaqSpeculative
Nasdaq could see improved market sentiment as inflation declines.
How it developed
Newest first. Tap a step to see who reported it.Layoffs reported in labor market data inform Fed's future rate decisions.1 source
- The Federal Reserve and the Reserve Bank of New Zealand are setting policy, with Ben Bernanke observing successful policy principles.Sub-event
Bernanke recounted research while Greenspan and Kling discussed inflation and market sentiment.1 source
Keep exploring
The entities involved
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FED
business
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Bureau of Labor Statistics
US government agency
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Ben Bernanke
American economist (born 1953)
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