Gelonghui April 28| Nick Timiraos, the "Fed's mouthpiece", recently wrote that another important debate is unfolding in the debate over whether and when the Fed will cut interest rates.retroarcademachine: Where will interest rates go in the long run? The key to the problem lies in neutral interest rates: interest rates that balance supply and demand of savings while ensuring stable economic growth and inflation. Neutral interest rates are sometimes called "r*" or "r-star" and cannot be directly observed and can only be inferred. Every quarter, Fed officials forecast long-term interest rates, which is actuallyretroarcademachineTheir estimate of neutral interest rates. Some now believe that neutral interest rates have reason to rise and have the potential to change broad asset prices. Because the economy is strong and inflation is "weak".
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