Analyst: It's Not Surprising That Federal Reserve Officials Disagree on the Neutral Rate

BlockBeats News, November 22nd, in this week's speeches, Chicago Fed President Austan Goolsbee and Fed Governor Michelle Bowman expressed contrasting views on the theoretical neutral interest rate level. The neutral interest rate refers to the level of interest rate that would balance the Fed's various economic objectives. Goolsbee emphasized that the Fed would need to further lower interest rates to reach this level, stating that the rate is "well below where we are now." Bowman, on the other hand, said, "We may be closer to a neutral policy stance than we currently think." Will Conrad from FHN Financial pointed out that given that in September's forecast, Fed officials anonymously estimated the neutral interest rate range to be between 2.375% and 3.75%, such a difference in views is not surprising. (FX678)