Hawkish or dovish central bankers: do different flocks matter for fiscal shocks?
This column presents evidence on the role that US monetary policy plays in how fiscal spending affects the economy.
- This column presents evidence on the role that US monetary policy plays in how fiscal spending affects the economy.
- A dovish Federal Open Market Committee (FOMC) delays policy rate increases, while a hawkish FOMC tightens monetary policy more promptly, following increased fiscal spending.