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Economic Commentary

Must the Fed Fight Growth?

If all of your information about the economy came from the nightly news and the daily press, your thinking would probably go something like this: “A funny thing happened on the way to this economic boom. The economy gave a party and the Federal Reserve didn’t come. Just as U.S. business activity was poised to burst from under the lingering shadows of the 1990-91 recession, monetary policy took a decidedly restrictive turn this year. Apparently, central bankers have been willing to sacrifice economic expansion in order to tilt at inflation windmills existing only in their own hyperactive imaginations.”

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Jordan, Jerry L. 1994. “Must the Fed Fight Growth?” Federal Reserve Bank of Cleveland, Economic Commentary 7/15/1994.

This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial 4.0 International