Monetary Policy Is About Right
The panelists give the Federal Reserve another strong vote of confidence, with 71% saying monetary policy is about right, up from 65% a year ago. Only 13% feel monetary policy is too tight, with the same number (14) saying it is too loose. Looking ahead, only 29% believe monetary policy should tighten over the next six months, down from 66% 18 months ago, with 53% saying it should remain unchanged. Most (57%) think short-term interest rates will increase, with respondents split between a 0.25 and a 0.5 percentage point increase over the next six months.
| Current Monetary Policy Is: | |||
|---|---|---|---|
| Survey Date | Too restrictive | About tight | Too stimulative |
| August 2006 | 13 | 71 | 14 |
| March 2006 | 8 | 76 | 16 |
| September 2005 | 5 | 65 | 30 |
| March 2005 | 3 | 63 | 33 |
| August 2004 | 4 | 59 | 36 |
Monetary Policy Is
- Highlights
- Short-term risks
- Long-term Challenges
- Strengths in the US Economy
- Monetary Policy
- Fiscal Policy
- Energy
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- Data file (PDF)