Inflation Focus

Experts at the Kansas City Fed have developed a collection of research and resources exploring inflation and its impact on consumers, industries and economies.

In economics, inflation occurs when prices increase rapidly, resulting in a decline of purchasing power.

Keeping prices stable is a primary mission of the Federal Reserve. One way the Kansas City Fed monitors inflation trends is through the work of experts and economists. Below, you’ll find an archive of the Bank’s latest research and resources related to inflation.


54 result(s) found
Article Title Author(s) Date Type

Heterogeneity in Household Inflation Expectations: Policy Implications

A tightening in monetary policy can lower inflation expectations even among households whose expectations are especially high.

Taeyoung Doh
JiHyung Lee
Woong Yong Park Expandable Row
July 15, 2024
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Housing Services Inflation May Decline Only Gradually

The inflation rate for housing services remains about 2 percentage points above its 2019 level. Several factors are likely to slow its decline, including more than a decade of underbuilding prior to the pandemic, limited capacity to increase the nation’s housing stock, and the limited number of homes available for sale due to the steeper mortgage rates owners would face if they sold and purchased a different home.

Jordan Rappaport Expandable Row
June 24, 2024
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Despite High Inflation, Longer-Term Inflation Expectations Remain Well Anchored

The Federal Reserve’s long-run 2 percent inflation target is intended to prevent periods of high inflation from becoming embedded in longer-term inflation expectations. However, inflation has remained above the Fed’s target for over three years, increasing the risk that longer-term inflation expectations could become unanchored. Building on our previous research, we study recent market reactions to inflation news and find that longer-term inflation expectations appear to remain well anchored.

Brent Bundick
A. Lee Smith Expandable Row
May 31, 2024
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Labor Market Shocks and Monetary Policy

Worker mobility played a key role in shaping inflation dynamics during the Great Recession and COVID-19 recoveries.

Serdar Birinci
Fatih Karahan
Yusuf Mercan
Kurt See Expandable Row
May 6, 2024
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Current Monetary Policy May Be Less Restrictive Than It Seems

Compared with most historical inflationary episodes since the 1960s, the current U.S. inflation cycle features both higher core inflation and a more resilient real economy. This co-movement of prices and real activity suggests monetary policy has not sufficiently reduced demand. We examine the current policy stance and argue that interest rates may indeed be less restrictive than commonly thought. To lower inflation to 2 percent, the Federal Reserve may have to maintain a restrictive policy stance for some time.

Johannes Matschke
Alice von Ende-Becker Expandable Row
May 3, 2024
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Jose Mustre-del-Rio
Jordan Rappaport
Shu-Kuei X. Yang Expandable Row
March 8, 2024
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Jordan Rappaport
A. Lee Smith
Shu-Kuei X. Yang Expandable Row
March 1, 2024
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Caleb Bray
Jordan Rappaport
Shu-Kuei X. Yang Expandable Row
February 16, 2024
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Shocks, Frictions, and Policy Regimes: Understanding Inflation after the COVID-19 Pandemic

Fiscal and monetary policies likely contributed to the persistent rise in inflation during the post-pandemic period.

Taeyoung Doh
Choongryul Yang Expandable Row
December 22, 2023
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How Optimal Was U.S. Monetary Policy at the Zero Lower Bound?

Forward guidance and large-scale asset purchases effectively offset disinflationary effects from the zero lower bound.

Brent Bundick
Logan Hotz
A. Lee Smith Expandable Row
December 1, 2023
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