Households with mortgages to pay appear to adjust their consumption significantly after an unexpected change in interest rates, whereas renters and outright home-owners are far less sensitive. 21 Another one is demographics. By increasing inflation, an expansionary monetary shock reduces the real value of retirement accounts.
Information about this review can be found on the Federal Reserve Board's website.4 In this review, we will listen to a broad range of stakeholders at public events held around the country, and we will draw on their insights as we assess how best to achieve and maintain maximum employment and price stability in the most robust fashion possible.