Fed’s new neutral may be one FOMC takeaway

Considerable focus will be on what the Fed dots say about the assumed “neutral” policy rate that neither stimulates nor reins in the economy long term. — Reuters

US Federal Reserve’s (Fed) meeting in the week ahead has lost the heat it once had as a likely moment for the central bank’s first interest rate cut – but it could shine a big light on where the Fed thinks the economy is at over the long run.

Conditioned by verbal pushback from Fed officials all year and still-sticky inflation and punchy growth readings, futures markets currently price a near zero chance of a first cut at the March 20 gathering and now favour June or July instead.