Explaining and Forecasting the US Federal Funds Rate

MATTHEW CLEMENTS is a freelance economist and is author of many articles on market commentaries on economics in the financial press. He was previously employed as an economist by Prebon Yamane in London.

Introduction Monetary Policy Models The History of Fed Policy Procedures, Targets and Instruments Since 1970 The Monetary Policy Model (MPM) Making Interest Rate Forecasts Using the MPM Comparing MPM Results with the Eurodollar Futures Market Comparing the Two-Year Average Forecasting Errors of the MPM and Eurodollar Futures