This special report highlights ongoing work to benchmark the stance of monetary policy using a range of policy rules that are widely employed in studies of monetary economics.

Throughout the nearly nine years I have been president and CEO at the Philadelphia Fed, my foremost responsibility has been our work through monetary policy to achieve the Fed’s dual mandate of price stability and maximum employment. To some, it can seem like a very static process, but how I arrive at these important decisions is much more dynamic. Let me explain.

Research in Focus — Makoto Nakajima of the Philadelphia Fed developed a model to study how monetary policy affects different racial groups, and he considers its policy implications.