WP 25-26 – The authors study how various labor market indicators can be used to assess the position of the labor market relative to maximum employment. The analysis is conducted as part of the Fed’s 2025 review of its monetary policy framework.

Economic Insights — How would the economy have evolved had the Fed adopted a different monetary policy stance during the latest tightening cycle? To find out, four economists adopt a novel empirical perspective.

WP 20-25/R – Using a novel rotation criterion, we show that sparsity in the loading matrix is sufficient to recover individual loading vectors in a factor model. This enables economic interpretation of the factors.