Central-bank guides

A plain-English explanation of what hawkish means in central-bank policy and why it matters.

What dovish means in central-bank policy, with the distinction between supporting cuts and forecasting them.

A concise explanation of how central banks use monetary policy to pursue inflation and employment goals.

How economists use reaction function to describe the conditions that influence central-bank decisions.

The difference between tighter and easier monetary policy, including why a hold can still be restrictive.

The neutral interest rate, often called r-star, and why it is an uncertain benchmark rather than a target.

How inflation-targeting frameworks guide central-bank communication and policy decisions.

Forward guidance is how central banks explain the conditions that could shape future policy decisions.

What to look for in a policy statement: the decision, rationale, vote, and forward-looking language.

A practical way to read central-bank minutes: separate the decision from the debate, risks, and future conditions.

Minutes record the policy discussion behind a central-bank decision, but formats and timing differ by institution.

A practical guide to FOMC minutes, including the participants' views, policy discussion, and vote.

What central-bank press conferences add beyond the statement: opening remarks, questions, and policy context.

The Fed dot plot shows individual FOMC participants' rate projections, not a committee promise or forecast.

The Federal Reserve's Summary of Economic Projections contains participants' economic and rate projections.

What a policy rate is, how it influences market rates, and why central banks set different named rates.

A basis point is one hundredth of one percentage point. Learn how it is used in rate decisions.

The real interest rate adjusts a nominal interest rate for inflation and helps explain the policy stance.

Quantitative easing is large-scale asset purchasing intended to ease financial conditions when rate policy is constrained.

Quantitative tightening reduces a central bank's balance sheet, usually by allowing assets to mature without replacement.

Yield curve control targets government-bond yields directly rather than only setting a short-term policy rate.

The main channels through which central-bank decisions influence rates, spending, inflation, and employment.

A dissent occurs when a voting policymaker formally votes against the committee's decision.

Central-bank committees include different roles; only voting members formally decide policy at a meeting.

A blackout period restricts some policy communications around a scheduled decision meeting.