Council of Economic Advisors - CEA

DEFINITION of 'Council of Economic Advisors - CEA'

A panel of three noted economists who advise the president of the United States on macroeconomic matters. The council consists of a chairman and two other members, all of whom are appointed by the president and approved by the Senate. Its primary goals are interpreting macroeconomic data, formulating economic policy for the White House, and overseeing other parts of the government to ensure all departments promote the current economic agenda.

Past chairman of the CEA include Alan Greenspan, and current Federal Reserve Chairman Ben Bernanke.

BREAKING DOWN 'Council of Economic Advisors - CEA'

The CEA produces an annual report, "The Economic Report of the President", which summarizes its views on the past year, and offers a forecast for the coming year. While the intellectual weight of the CEA always runs high, its message is still one directed by the President's agenda, so criticism of the report usually occurs after its February release.

The CEA was formed via the Employment Act of 1946, and has always promoted a Keynesian bent. Overarching goals include:

1) Low unemployment rates
2) Increased national production
3) Price stability (low inflation)
4) Proactive government intervention

RELATED TERMS
  1. Commodity Exchange Act - CEA

    An act passed in 1936 by the U.S. Government that provides federal ...
  2. Big Ben

    An investing slang term referencing Ben Bernanke. The name Big ...
  3. Exempt Commodity

    Any commodity other than an excluded or agricultural commodity. ...
  4. Economic Indicator

    An economic indicator is a piece of economic data, usually of ...
  5. Okun Gap

    A macroeconomic term that describes the situation when an economy's ...
  6. Alan Greenspan

    The former chairman of the Board of Governors of the Federal ...
Related Articles
  1. Economics

    The President's Council Of Economic Advisers

    We'll look at the history of the Council, describe its functions and explore some of its most important decisions.
  2. Economics

    What are the Federal Reserve Chairman's responsibilities?

    Learn about the duties and responsibilities of the chairman of the Federal Reserve Board, including testifying before Congress and as chair of the FOMC.
  3. Economics

    Alan Greenspan: 19 Years In The Federal Reserve

    Follow the economic glories and bumbles in the career of the previous Fed chair.
  4. Economics

    Macroeconomics

    Find out everything you need to know about macroeconomics.
  5. Options & Futures

    "Helicopter Ben" Bernanke: Flying High Or Headed For A Tailspin?

    Bernanke's first four-year term will come to an end in early 2010. Will it be his last?
  6. Economics

    Macroeconomics: Introduction and History

    By Stephen Simpson In general, economics is the study of how agents (people, firms, nations) use scarce resources to satisfy unlimited wants. Macroeconomics is the branch of economics that concerns ...
  7. Economics

    Ben Bernanke: Background And Philosophy

    Get some insight into the man at the forefront of key U.S economic decisions.
  8. Economics

    Translating "Fed Speak" Into Plain English

    Confused by the Fed's lingo? Find out what it can tell you and learn how to decipher it.
  9. Economics

    The Legacy Of Ben Bernanke

    Will Bernanke go down in history as one of the greatest-ever chairpersons of the Fed, or is his legacy likely to be tarnished by events after his departure from the position, as was the case ...
  10. Economics

    Deflation and Debt: Is the United States the New Japan?

    Discover how mainstream macroeconomics has failed Japan and why the United States should take care to avoid Japan's borrow, spend and print model.
RELATED FAQS
  1. How is the Chairman of the Securities and Exchange Commission (SEC) chosen?

    Learn how the Chairman of the Securities and Exchange Commission is chosen, from presidential appointment to Senate confirmation. Read Answer >>
  2. What is the difference between macroeconomics and finance?

    Dive into the world of economics by learning the key differences between macroeconomics and finance. These ideas help investors ... Read Answer >>
  3. How do I differentiate between micro and macro economics?

    Differentiating between microeconomics and macroeconomics is primarily concerned with the difference of the scales of the ... Read Answer >>
  4. What macroeconomic problems do policy makers most commonly face?

    Learn about the macroeconomic factors policymakers have to be concerned with when deciding on economic policies, such as ... Read Answer >>
  5. Should investors care more about microeconomics or macroeconomics?

    Learn why investors such as Warren Buffett focus on microeconomics, not macroeconomics, when evaluating individual investment ... Read Answer >>
  6. What is the difference between accounting and economics?

    Discover the difference between accounting and economics by comparing and contrasting the financial discipline of accounting ... Read Answer >>
Hot Definitions
  1. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  2. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  3. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  4. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  5. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  6. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
Trading Center