Federal Reserve has a dual mandate; price stability and maximum employment. The chart is prepared in FRED dashboard of St. Louis FED.
How each mandate stands?
Price stability -
- Probability of deflation has diminished over the years through FED action.
- Inflation remained below FED's target of 2% since the crisis.
Maximum employment -
- Unemployment rate has dropped to 5.5% much faster than economists and FED were expecting.
- It currently stands at the upper range of the central tendency of longer run FED forecast.
Recent FED speakers -
- Loretta J. Mester - "Rate hike needed soon. Will not support a less than 25 basis points hike."
- Richard Fisher - " FED need to rate hike or lose credibility"
- James Bullard - "Rate hike is overdue"
Dollar -
- Excessive strength of dollar is sure to be discussed over the FED meeting and would pose a challenge for FOMC.
- Stronger dollar pose challenge for inflation as well.
Probability -
- FED to go with the first rate hike around June this year.
- Move to a neutral stance thereafter for much longer time than market is expecting.
- Shout the buck down, after the rate hike.


With Iran and the US signing a peace deal, where does that leave Benjamin Netanyahu?
Gold's 365-Day EMA Streak Since Oct 2023 Faces Its First Real Test at $3,980 — Break or Bounce to $4,140?
J.P. Morgan Sees Potential Vestas Guidance Upgrade Amid Strong Wind Energy Demand
Today’s space race could turn fatal if we don’t agree on new rules
China’s AI Manufacturing Boom Masks Weak Consumer Economy, Citi Says
AI Memory Boom Sparks Global Chip Supply Crunch
World Cup technology: from ref cams to AI analysts, cutting-edge research is changing the game 



