Managing Monetary Policy at the Zero Interest Bound
The Federal Reserve’s near zero interest rate policy and $2 trillion dollar balance sheet have done much to stabilize economic and financial conditions in the United States. Yet the recovery from the Great Recession is slow. Net private job creation remains too low to absorb the secular growth in the labor force, let alone what is needed to return to work those who lost their jobs in the Great Recession.
The Federal Reserve’s near zero interest rate policy and $2 trillion dollar balance sheet have done much to stabilize economic and financial conditions in the United States. Yet the recovery from the Great Recession is slow. Net private job creation remains too low to absorb the secular growth in the labor force, let alone what is needed to return to work those who lost their jobs in the Great Recession.
Read the full report here.
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