“Navigating Monetary Policy as Headwinds Shift to Tailwinds,” speech delivered at the Money Marketeers of New York University, New York, March 6, https://www.federalreserve.gov/newsevents/speech/brainard20180306a.htm. Bureau of Labor Statistics (2017). “Estimating the U.S. Labor Share,” Monthly Labor Review (February), https://www.bls.gov/opub/mlr/2017/article/estimating-the-uslabor-share.htm. Hooper, Peter, Frederic S. Mishkin, and Amir Sufi (2019).
In setting the reference value for monetary growth, the Governing Council emphasised its medium-term orientation. Substantial or prolonged deviations of current monetary growth from the reference value will normally signal risks to price stability in the medium term. The choice of M3 was guided by its performance in terms of stability and leading indicator properties for future inflation.