Federal Reserve Simulator

Description

Played on Marketplace by Kai Ryssdal

Kai Ryssdal played Federal Reserve Simulator on air on Marketplace. Now take the chair of the United States Federal Reserve in a turn-based economic strategy game.



Can you beat inflation without crashing the economy? Every quarter, weigh inflation against jobs, growth and financial stability. Your decisions shape the economy, while crises and political pressure test your resolve.

Set policy and read the consequences

Manage the federal funds rate, discount lending and reserve requirements. Deploy quantitative easing (QE) or quantitative tightening (QT), publish forecasts and use forward guidance to shape market expectations. Your available tools evolve as you move through history.

Policy effects arrive with delays. Raise rates too aggressively and you may trigger a recession. Cut too quickly and inflation may return. Build credibility so that markets trust your words, and navigate disagreements within the Federal Open Market Committee (FOMC).


Set the rate. Watch the economy respond over the following quarters.

Learn the job behind the desk

Start with a guided first run that walks you through the controls, your first rate decision and how to read the results. Quarterly Briefings explain what changed, how your policies and outside shocks contributed, and what to watch next. Explore the in-game Fedcyclopedia whenever you want to understand a monetary-policy tool.


See what changed, what drove it and what to watch next.

Take on history or run for a century

Step into the terms of five historical Fed chairs:

• Paul Volcker: Bring high inflation under control while managing the cost to jobs and growth.
  
• Alan Greenspan: Face Black Monday, the dot-com crash and the aftermath of September 11.
  
• Ben Bernanke: Confront the global financial crisis and use QE to support the economy.
  
• Janet Yellen: Normalize policy while protecting a fragile recovery.
  
• Jerome Powell: Navigate the pandemic and the return of high inflation.

For a longer challenge, lead the Fed through the Historical Run from 1920 to 2027, or create a Sandbox run spanning 30 to 100 years with adjustable event frequency and intensity.

Protect the Fed's independence in the AI era

In the Kevin Warsh scenario, take office in 2026 amid elevated inflation, demands for rate cuts and uncertainty about artificial intelligence. The Independence Pendulum tracks pressure from the President and the Fed's Board. Prolonged defiance can bring a federal investigation; yielding to political pressure can provoke a Board revolt led by Jerome Powell.

Adjust AI Impact to explore different effects on productivity, employment and markets. Heavy QE can inflate an AI equity bubble and worsen a later correction. The outcome depends on your settings and policy choices.

Build a crisis and test your judgment

Create a Custom Mode scenario around stagflation, deflation or a market crash. Add a wildcard such as war, an energy shock or an automation boom. Enable Prestige Mode for tougher scoring and less room for error.

In historical chair scenarios, earn a grade from A to F and compare your performance with historical benchmarks. Unlock achievements, revisit your approach and try for a better outcome.

The next decision is yours, Chair.