The Fed's Soft Landing at Neutral

When you have monetary policy hovering at neutral and not going back down to accommodative I think you know neutral is the equilibrium level right so you would expect the Fed to if the inflation threat disappears or or at least recedes without the economy breaking then the Fed can stop pushing this beyond neutral. At that point the Fed would target neutral which currently is expected to be two and a half percent - but what might happen is the Fed might end up at neutral but decide that interest rates are too high and that they're cramping the economy's ability to function well.

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