Two new contributions overturn key tenets of conventional stabilization policy, showing that slow or absent fiscal adjustment can be a central bank’s best ally over the business cycle rather than an obstacle to price stability. Together, they map out a new framework for monetary-fiscal coordination in which the two arms of government are always intertwined.

Two new theoretical frameworks independently show that interest rate policy and balance sheet management are complementary tools and not substitutes, each with a distinct and irreplaceable role in achieving both macroeconomic stability and an efficient distribution of risk across the economy.

New Fed research establishes that reserves plus ON RRP balances of roughly 2.3 trillion would approach September 2019 scarcity levels (adjusted for liquid deposits), while volatile Treasury General Account fluctuations complicate quantitative tightening by causing reserve “snapback” risks during debt ceiling episodes.

Two papers collectively map the complex architecture of central bank swap lines, revealing a system that achieves broad global reach through indirect network connections yet remains deeply stratified by a rigid currency hierarchy.

Two new research papers offer crucial insights into the current political pressures on the Fed: one quantifies the intensity of presidential interference, while the other tests whether the Fed can communicate its way out of the credibility crisis.

Two papers identify and measure the true effects of monetary policy shocks by separating pure policy moves from the additional information central banks communicate about economic conditions and their policy rules.

Two working papers reveal that forward guidance effectiveness has declined significantly across major economies, with heterogeneous expectations and fiscal policy interactions fundamentally undermining central banks’ communication strategies.

Two working papers challenge conventional wisdom about monetary policy transmission through housing markets, revealing that house prices and rents move independently when interest rates change, and that adjustable-rate mortgages only amplify policy effects when borrowers are liquidity-constrained.

New research emphasizes how the Taylor Rule has shaped policy debate, its empirical fit, and the evolving challenges surrounding rule-based policy, credibility, and optimal central bank responses to inflationary shocks in the post-Covid era.

Two recent articles explore how the current administration’s tactics—ranging from attacks on budget and staffing to dramatic maneuvers to install a new chair—threaten not only Fed credibility, but also long-term economic stability.