Reported 5 months ago
Federal Reserve Governor Christopher Waller stated that he still believes the neutral interest rate is relatively low, cautioning that unsustainable fiscal spending could impact this trend. Waller emphasized the importance of monitoring this rate in the future, highlighting that the U.S. is on an unsustainable fiscal path and discussing various factors influencing the neutral rate. Policymakers are observing whether the rate has increased due to the economy's response to higher rates. Waller focused on the U.S. 10-year Treasury yield as a proxy for the neutral rate and outlined trends that may have pushed it down, suggesting that some factors could contribute to an increase in the rate in the future.
Source: YAHOO