One neutral rate estimate suggests Fed’s policy stance is accommodative, paper says
Aug 17 (Reuters) - The Federal Reserve’s current policy rate is probably accommodative, if measured against a medium-run estimate of the so-called neutral rate at which borrowing costs are neither slowing nor boosting the economy, according to research published on Monday by the San Francisco Fed. That conclusion contrasts with the current assessment of most U.S.
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Aug 17 (Reuters) - The Federal Reserve’s current policy rate is probably accommodative, if measured against a medium-run estimate of the so-called neutral rate at which borrowing costs are neither slowing nor boosting the economy, according to research published on Monday by the San Francisco Fed. That conclusion contrasts with the current assessment of most U.S. central bank policymakers who feel that policy is currently restrictive or possibly neutral. It similarly clashes with the picture derived from Fed policymaker estimates of the long-run neutral rate that indicate the current benchmark interest rate range of 3.50%-3.75% is perhaps half a percentage point above a neutral setting.
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- Aug 17 (Reuters) - The Federal Reserve’s current policy rate is probably accommodative, if measured against a medium-run estimate of the so-called neutral rate at which borrowing costs are neither slowing nor boosting the economy, according to research published on Monday by the San Francisco Fed. That conclusion contrasts with the current assessment of most U.S.
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One neutral rate estimate suggests Fed’s policy stance is accommodative, paper says
Sources1TypeCoverageInvesting.com · Economy