The Fed's Dual Mandate Conundrum

Interactive 3D Economic Data Visualization

Federal Funds Rate vs Inflation vs Unemployment (1954-2025)

About This Visualization

This interactive 3D scatter plot illustrates the Federal Reserve's dual mandate challenge: maintaining maximum employment while ensuring price stability. The visualization shows how these three key economic indicators have evolved over seven decades.

🎮 Interactive Controls

  • Click and drag to rotate the 3D view
  • Scroll to zoom in and out
  • Right-click and drag to pan
  • Hover over data points for details
  • Double-click to reset view

📊 Data Features

  • 285 monthly data points (sampled)
  • Time-based color coding (1954-2025)
  • Detailed hover tooltips
  • Policy target reference planes
  • Responsive design for all devices

📈 Economic Indicators

  • X-axis: Federal Funds Rate (%)
  • Y-axis: Inflation Rate - CPI Change (%)
  • Z-axis: Unemployment Rate (%)
  • Color: Time progression (years)

🎯 Federal Reserve Policy Targets

🟢 Green Plane: Maximum Employment Target (4% Unemployment Rate)
Represents the Fed's goal for maximum sustainable employment
🔴 Red Plane: Target Inflation Rate (2% CPI Change)
Represents the Fed's goal for price stability

These transparent planes help visualize when the economy was above or below Federal Reserve policy targets, illustrating the challenges of the dual mandate.

Data Source: Federal Reserve Economic Data (FRED)

Time Period: July 1954 - Present (Monthly Data)

Visualization: Interactive 3D Scatter Plot with Plotly.js

This chart demonstrates the complex relationship between monetary policy, inflation, and employment over time.