What is the main price index that the Fed uses when setting its monetary policy?

3 Answers

  • 1 decade ago
    Favorite Answer

    They mainly care about inflation these days, so that would correspond with the CPI, probably more non-core than core. They also care a bit about GDP growth to make sure the economy isn't growing too quickly.

  • 1 decade ago

    Consumer Price Index(CPI)

  • 1 decade ago

    Wage-price inflation. The Fed's job is to manage inflation, and preserve wealth.

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