What is the main price index that the Fed uses when setting its monetary policy?
- ArbitrageLv 71 decade agoFavorite 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)
- helixburgerLv 61 decade ago
Wage-price inflation. The Fed's job is to manage inflation, and preserve wealth.