Sometimes, FOMC members think the risk to their inflation forecast is to the upside, and sometimes, they think the risk to their inflation forecast is to the downside, see the first chart below.
This is in sharp contrast to their views on the risks to the unemployment rate.
The number of FOMC members who think the risk to their forecast for the unemployment rate is weighted to the upside is always much higher than the number of FOMC members who think the risk to their unemployment rate forecast is to the downside, see the second chart.
In other words, the Fed has a very asymmetric view on its dual mandate, putting much more weight on low unemployment than on getting inflation to stay at 2%.
Note: No survey was conducted in March 2020. Source: Federal Reserve, Bloomberg, Apollo Chief EconomistNote: No survey was conducted in March 2020. Source: Federal Reserve, Apollo Chief Economist
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