Can a College Student Outsmart Janet Yellen?

Economics students try their hand at deciding monetary policy in the Fed Challenge

“The labor market is strengthening, but inflation remains stubbornly below target and financial conditions are volatile,” Daniella Gambino, 22 years old, told listeners gathered in the Federal Reserve’s chandeliered boardroom in Washington.

Katherine Craig, 21, said her colleagues were considering “the risk of premature tightening” and discussed an option that “prescribes low rates until inflation shows clear signs of picking up.”