Kansas City Fed's Measure of Policy Rate Uncertainty (KCPRU)
KCPRU • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.99
Year-over-Year Change
-3.61%
Date Range
10/8/2021 - 8/7/2025
Summary
The Kansas City Fed's Measure of Policy Rate Uncertainty (KCPRU) quantifies the market's uncertainty about future Federal Reserve monetary policy decisions. This metric provides critical insights into financial market expectations and potential economic volatility.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
The KCPRU is a sophisticated economic indicator that measures the perceived variability and unpredictability of future interest rate policy decisions. Economists and financial analysts use this metric to understand market sentiment and potential monetary policy shifts.
Methodology
The index is calculated using advanced statistical techniques that analyze market expectations, financial instrument pricing, and implied volatility of interest rate derivatives.
Historical Context
Central banks and policymakers use this measure to gauge market confidence and potential economic uncertainty surrounding monetary policy decisions.
Key Facts
- Developed by the Kansas City Federal Reserve to measure policy uncertainty
- Provides insights into market expectations of future interest rate changes
- Helps economists and investors understand potential economic volatility
FAQs
Q: What does a high KCPRU value indicate?
A: A high KCPRU value suggests significant uncertainty about future monetary policy decisions and potential economic instability.
Q: How often is the KCPRU updated?
A: The KCPRU is typically updated regularly, reflecting the most recent market expectations and economic conditions.
Q: How do investors use the KCPRU?
A: Investors analyze the KCPRU to assess potential market risks and adjust their investment strategies based on expected monetary policy changes.
Q: What factors influence the KCPRU?
A: Factors include economic indicators, inflation expectations, global economic conditions, and Federal Reserve communication.
Q: Are there limitations to the KCPRU?
A: Like all economic indicators, the KCPRU has limitations and should be used in conjunction with other economic metrics for comprehensive analysis.
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Citation
U.S. Federal Reserve, Kansas City Fed's Measure of Policy Rate Uncertainty (KCPRU) [KCPRU], retrieved from FRED.
Last Checked: 8/1/2025