Effects of Fed policy rate forecasts on real yields and inflation expectations at the zero lower bound

Gabriele Galati and Richhild Moessner

Economics Letters, 2021, vol. 198, issue C

Abstract: Surprises in policy rate forecasts from the Fed’s Summary of Economic Projections significantly affected real yields at the zero lower bound. By contrast, we find no significant impact on long-term inflation expectations and thereby monetary policy credibility.

Keywords: Forward guidance; Policy rate forecasts; Zero lower bound (search for similar items in EconPapers)
JEL-codes: E52 E58 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Effects of Fed policy rate forecasts on real yields and inflation expectations at the zero lower bound (2020)
Working Paper: Effects of Fed policy rate forecasts on real yields and inflation expectations at the zero lower bound (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:198:y:2021:i:c:s0165176520304146

DOI: 10.1016/j.econlet.2020.109654

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