-
Fed Debate on Neutral Rate Misses the Bigger Picture
Federal Reserve policy makers are debating whether to stop tightening monetary policy when interest rates reach a neutral level that neither stimulates nor restricts growth. At this point, there is no easy answer, but central bankers should de-emphasize the level of rates at which they would pause and instead focus on the economic conditions that justify a pause. The federal funds rate currently sits in a range of 1.75 percent to 2.0 percent. The median policy maker estimate of the neutral rate is 2.9 percent within a wide overall range of 2.25 percent to 3.5 percent. The lowest of the estimates will almost be ... (full story)
- Comments
- Subscribe
- Comment #1
- Quote
- Sep 13, 2018 9:48pm Sep 13, 2018 9:48pm
- Guest
- | IP XXX.X.92.68
- Comment #2
- Quote
- Sep 13, 2018 10:59pm Sep 13, 2018 10:59pm
- Prof.Trader
- | Commercial Member | Joined Jan 2018 | 718 Comments
- Comment #3
- Quote
- Sep 13, 2018 11:43pm Sep 13, 2018 11:43pm
- AnniLi
- | Commercial Member | Joined Jan 2015 | 2212 Comments