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.
Source: Ex Fed Pres.Mester :Believes neutral rate is higher than used to be in the past. (https://www.forexlive.com/news/ex-fed-mesterbeleive-neutral-rate-is-higher-than-what-it-was-i-would-cut-25-bps-20241011/)
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