Gauging the Stance of Monetary Policy on a Weekly Basis

How can we learn more from financial market perspectives about the stance of monetary policy? Expanding the SF Fed’s Proxy Funds Rate data page to a weekly frequency provides detailed insights into how specific news and actions affect monetary policy tightness beyond what the federal funds rate level can show.

Sabrina Considine, Andrew Foerster, and Zinnia Martinez discuss the basics in the SF Fed Blog, “Gauging the Stance of Monetary Policy on a Weekly Basis.” To read more about the research and details behind the changes, see FRBSF Economic Letter 2024-15, “Anatomy of the Post-Pandemic Monetary Tightening Cycle.”

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.