Two weeks before the final Federal Reserve meeting of the year, the Economic Policy Institute, the Center for Economic Policy Research, and the Center for Popular Democracy have released a new FAQ on monetary policy, the Federal Reserve, and the proposed Full Employment Federal Reserve Act.
The FAQ includes answers to such questions as “Has the Fed kept interest rates artificially low for too long?” and notes that low interest rates have not hurt “poor savers,” fueled speculation, or helped banks or Wall Street, nor has quantitative easing increased inequality.
Despite slow wage growth and double-digit unemployment in some communities, many policymakers are ready to declare the economy to be at full employment, and the Federal Reserve is reportedly considering raising interest rates. The Full Employment Federal Reserve Act, introduced by Rep. John Conyers, would strengthen the definition of full employment so that Fed policymakers could no longer declare victory on a weak economic recovery.
EPI Research and Policy Director Josh Bivens and senior economist Elise Gould will be monitoring this Friday’s jobs report and are available to discuss its implications for Federal Reserve policy, among other topics.