Secondly, an alternative is using the market expectations of future shortterm interest rates, the socalled market interest rates approach (MIR), where these are typically derived from the yield curve. Compared with the CIR, the MIR assumption in principle preserves a higher degree of internal consistency as it is in line with the other asset price inputs for the forecasts.
Before we begin our conversation, I want to share a few thoughts about the outlook for the economy and monetary policy.1  Current Economic Situation and Outlook The U.S. economy expanded at a robust pace in 2018, and my baseline outlook for 2019 foresees somewhat slower but still-solid growth in the year ahead.