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) works to advance the nation’s monetary, financial, and payment systems to build a stronger economy for all Americans. As part of the U.S. central bank, the SF Fed serves the Twelfth Federal Reserve District, which covers the nine western states—Alaska, Arizona, California, Hawai’i, Idaho, Nevada, Oregon, Utah, and Washington—plus American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands. By pursuing our two key goals of maximum employment and price stability—known as the Fed’s dual mandate—we work toward supporting an economy that works for everyone.