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Powell says Fed may raise interest rates above `neutral'

Published 10/03/2018, 05:04 PM
© Reuters.  Powell says Fed may raise interest rates above `neutral'
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  • Federal Reserve Chairman Jerome Powell repeats the Fed's intention to continue raising interest rates at a gradual pace that may push rates above the so-called "neutral rate," the point at which the rate neither helps nor hurts economic growth.
  • Powell commented on the economy at an event in Washington hosted by The Atlantic magazine and the Aspen Institute.
  • “We may go past neutral. But we’re a long way from neutral at this point, probably," he said.
  • Similar to his speech yesterday in Boston, he remarked how the U.S. is currently experiencing “a remarkably positive set of economic circumstances."
  • “There’s really no reason to think that this cycle can’t continue for quite some time," he added.
  • U.S. 10-year Treasury note yield gain 12 basis points to 3.185%. (TLT -1.7%), (TBT +3.6%)
  • Previously: Fed's Powell considers the paradox of low inflation and low unemployment (Oct. 2)
  • Now read: Wait To Buy Bonds Or Buy Bonds And Wait?


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