Fed expected to respond strongly to inflation, job market conditions, research shows
Investors and economists expect the U.S. central bank to respond "strongly and systematically" to changes in inflation and the labor market, according to research published on Monday by the San Francisco Fed that underscores the current sensitivity of financial markets to U.S. economic data.
The Fed's perceived responsiveness to economic data picked up notably in 2022, driven first by inflation data and, last year, by labor market data, based on the analysis of perceptions embedded in professional forecasts and in bond market moves published in the regional Fed bank's latest Economic Letter. (https://www.frbsf.org/research-and-insights/publications/economic-letter/2025/02/current-perceptions-about-monetary-policy/)
February 24, 20256:02 PM GMTUpdated 6 hours ago
https://www.reuters.com/markets/us/fed-expected-respond-strongly-inflation-job-market-conditions-research-shows-2025-02-24/