ZIFFPAGE TITLEFederal Reserve Board Base

By Mel Duvall  |  Posted 2005-04-06 Email Print this article Print

How does Federal Reserve chairman Alan Greenspan decide to raise rates a quarter point? By analyzing a potent mixture of raw pecuniary data and computerized economic intelligence against first-hand reports from key hubs of U.S. financial activity and five


Federal Reserve Board Base Case Headquarters: 20th St. and Constitution Ave. N.W., Washington, DC 20551

Phone: (202) 452-3000

Business: U.S. monetary policy, economic research

Chief Information Officer: Stephen Malphrus

Budget 2004-2005: $529 million.

Challenge: To collect and analyze more than 1.5 million economic statistics to help devise monetary policy and affect performance of the U.S. economy.

Baseline Goals

  • Keep inflation, as measured by personal consumption expenditures, at 1.75% or less in 2005 and 2006, about the same as last year's 1.6% increase.
  • Grow the economy by 3.5% or more, compared to 3.75% in 2004.
  • Reduce unemployment to 5.25% or less, from 5.4% in 2004.
  • Work with the White House to reduce the federal deficit, from $412 billion last year.

Contributing Editor
Mel Duvall is a veteran business and technology journalist, having written for a variety of daily newspapers and magazines for 17 years. Most recently he was the Business Commerce Editor for Interactive Week, and previously served as a senior business writer for The Financial Post.


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