U.S. Fed faces challenge in pinning "neutral" rate amid monetary tightening: report


  • World
  • Wednesday, 27 Apr 2022

NEW YORK, April 26 (Xinhua) -- The U.S. Federal Reserve may scramble in finding where to stop at a "neutral" rate, which is neither accommodative nor restrictive to economic activities, in this round of monetary tightening, according to a recent report by the Wall Street Journal.

Even in normal times, no one knows where this theoretical rate is and the neutral rate may be higher than Fed officials' recent estimate, taking into account elevated inflation, said the report.

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