Reported 3 days ago
The Federal Reserve is cutting interest rates again in an attempt to balance inflation and employment, but the challenge lies in determining the 'neutral' rate that neither restricts borrowing nor stimulates the economy excessively. With current rates at 4% to 4.25%, the Fed is exploring if they can lower rates further without compromising economic stability, as varying opinions exist on what the neutral rate truly is. Factors like demographics, government spending, and emerging technologies like AI could impact future interest rates and the economy's trajectory.
Source: YAHOO