Friday , 22 November 2024
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Ex Fed Pres.Mester :Believes neutral rate is higher than used to be in the past.

  • Believes the neutral rate is higher than it used to be in the past
  • The Funds rate is high relative to where inflation is currently
  • Always want to keep monetary policy moving to where the economy is going.
  • There is room to go in nominal funds rate before reaching the neutral rate.
  • Fed has to be more forward-looking than the market
  • I don’t think that much has changed in the economy
  • A Fed policy maker time horizon is more longer term
  • I would cut rates by 25 bps. A stop-and-go is not a good look for the Fed.
  • The recent data has not changed the medium-term economic outlook

This article was written by Greg Michalowski at www.forexlive.com.

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