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Is It a Bad Thing That the Fed Owns a Whole Lot of Assets?
The Fed has a model of the neutral rate of interest that's required to keep the economy humming at full employment. The thinking is so driven by oukno, the ok, we've got to get the interest rates down and right in a world where inflation is really low. And for the fed, it' a good thing because the higher,. you know, the right level inflation means you get real interest rates where you want em.