Jan 31 • Economics
Close To Neutral
In this Christopher Waller statement he is looking at a weak labor market as a reason to cut rates in an attempt to reach a neutral stance. However he also said that policy is slightly above neutral. This is where the credible threat theory says if inflation expectations rises the policy will shift to neutral without an interest rate adjustment. https://www.federalreserve.gov/newsevents/speech/waller20260130a.htm
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Close To Neutral
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