Federal Open Market Committee (FOMC) sets policy for the Federal Reserve.

Data to Monitor Once A Month \\ 50 Plus Year Average \\ Acceptable Range

1. Consumer Price Index YOY (CPY) Avg 3.8% Range 3%-5%
2. Case Shiller Home Price Index YOY (HPY) Avg 5.29% Range 3.5%-7%
3. Unemployment Rate (UR) Avg 5.73% Range 4.5%-7%

Tools Available

1. Raise/lower Federal Funds Rate if CPY is too high/too low
2. Raise/lower Federal Mortgage Rates if HPY is too high/too low
3. Raise/lower Quantitative Easing if UR is too low/too high
4. Auction Off Troubled Financial Institutions

Financial Institution Tests

1. Uninsured deposits / domestic deposits < 50%
2. Loans and held-to-maturity securities / total deposits  < 50%
3. Financial Institutions that fail both tests for two consecutive quarters are auctioned off.

RESULT: No peer pressure, no human error, no recessions!

FOMCGPT(tm) To The Rescue!

A ChatGPT bot (FOMCGPT) has been designed to generate Federal Reserve policy once a month incorporating the algorithm above using easily modifiable configuration files. It is being tested using Federal Reserve FRED data from April 2021 to April 2023.