New York Federal Reserve Bank president John Williams. — Reuters
BEYOND the immediate headlines generated by the US Federal Reserve’s (Fed) 50 basis point interest rate cut, it is policymakers’ revised outlook for the fed funds rate’s eventual destination, and how soon it takes to get there, that matters more.
Broadly speaking, the Fed indicated on Wednesday it would emerge from its restrictive policy stance a little sooner than previously indicated, and the eventual “neutral” level of policy will be slightly higher.
