Economics Today 18th Edition by Roger LeRoy Miller

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A New Fed Chair Confronts the Fed's Low-Interest-Rate Promise
Fed chair Janet Yellen was a prior member of the Board of Governors and an architect of the Fed's policy to hold interest rates low as long as the unemployment rate remains above 6.5 percent. Just before Yellen agreed to take over as the chair, groups of Fed staff economists independently had conducted studies of the effects of the Fed's unemployment-rate-based monetary policy. One of these studies argued that the Fed should consider allowing the annual inflation rate to rise above the Fed's currently targeted level of 2 percent. Higher inflation, the study concluded, would be required to generate a measurable drop in the unemployment rate. The other study contended that, if anything, the Fed's 6.5 percent threshold for the unemployment rate was too high. A more appropriate unemployment-rate threshold for the Fed's low-interest-rate promise, the study concluded, was 5.5 percent.
Now that Yellen has assumed the role of Fed chair, she is considering the contention by Fed critics that the low-interest promise eventually could give Fed policymaking a bias toward higher inflation. These critics worry that the natural unemployment rate has drifted higher, so that trying to push down the unemployment rate could push up inflation. After reading the studies, Yellen decides effectively to side with the critics. Her first major official act as Fed chair is to end the Fed's explicit link between interest rates and the unemployment rate.
Which of the Fed studies emphasizes the short-run Phillips curve? Which focuses more on the long-run Phillips curve? Explain.