Public trust is a cornerstone of central banking. Shocks to trust depress economic activity and may cause inflation expectations to increase. This column introduces a new measure of public trust in the Federal Reserve derived from nearly 4 million tweets about the institution. Macro-financial factors affect trust, as does Fed communication. But scandals that bring into question the integrity of key officials cause the largest erosion in trust. While the shocks have only a short-lived impact on

Tag-uri: Inflatie