Reported 7 days ago
The Federal Reserve is facing a significant challenge in determining the elusive 'neutral rate'—the interest rate that balances economic growth and inflation. Often likened to a mythical creature, this rate is crucial for shaping Fed policy, yet remains unobservable. Recent discussions highlight the implications of productivity on this rate, suggesting that it could be higher than previously thought, impacting future rate cuts as the Fed navigates economic conditions.
Source: YAHOO