Our recent blog post highlights how new data covering the period since May 2023 have continued to follow the path of a nonlinear Phillips curve–the relationship between inflation and a particular measure of labor market slack, the ratio of the unemployment rate to the job vacancy rate.
This new evidence provides additional support to the findings in the earlier Economic Letter, “Reducing Inflation along a Nonlinear Phillips Curve” by Erin Crust, Kevin Lansing, and Nicolas Petrosky-Nadeau.
The Federal Reserve Bank of San Francisco (SF Fed) serves the public by promoting a healthy, sustainable economy, and supporting the nation’s financial and payment systems. With offices in Los Angeles, Seattle, Salt Lake City, Portland and Phoenix, the Bank serves the Twelfth Federal Reserve District, which includes one-fifth of the nation’s population and represents the world’s fourth-largest economy. As part of the nation’s central bank, the SF Fed informs monetary policy, regulates banks, administers certain consumer protection laws and acts as a financial partner to the U.S. government.