On February 20, Federal Reserve’s Bostic stated that the neutral interest rate may be 0.25 to 0.5 percentage points lower than the current policy rate. If inflation trends “go in the wrong direction” and start to rise, the Federal Reserve will have to consider raising interest rates. (Jinshi)
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Federal Reserve's Bostic: Neutral interest rate may be 0.25 to 0.5 percentage points below the current policy rate
On February 20, Federal Reserve’s Bostic stated that the neutral interest rate may be 0.25 to 0.5 percentage points lower than the current policy rate. If inflation trends “go in the wrong direction” and start to rise, the Federal Reserve will have to consider raising interest rates. (Jinshi)