The Economist Macroeconomic Analysis Engine FOMC Policy Continuity vs. Novelty Model

Fed Monetary Policy Continuity Simulator

Explore the macroeconomic dilemma between institutional monetary continuity (Taylor Rule baseline) and strategic policy novelty (Kevin Warsh signaling shifts) across an 8-quarter projection horizon.

Macro Shocks:

8-Quarter FOMC Interest Rate Path Projection

Comparing standard Institutional Continuity (Taylor Rule) vs. Strategic Novelty Regime

Continuity (Baseline)
Strategic Novelty
Timeline Quarter: Q4 Projection

Dual-Mandate Trajectories

Inflation & Unemployment Convergence

Yield Curve Shift Response

1M to 30Y Treasury Term Structure

FOMC Regime Comparison Matrix

Key economic indicators and divergence metrics under current scenario

Policy Regime Terminal Rate (Q8) Inflation Gap (Q8) Sacrifice Ratio Credibility Index Policy Divergence
Institutional Continuity 3.65% +0.30% 1.42 94 / 100 Baseline
Strategic Novelty (Warsh) 4.05% +0.15% 1.68 88 / 100 +0.40%
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