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Make Me Smart

A new normal for interest rates?

Jul 11, 2024
Federal Reserve Chair Powell hints at the end of near-zero interest rates. NATO members increasing defense spending. Hospitals face financial strain. Changes in administrative agencies post-Chevron doctrine. Healthcare job market still hot.
22:28

Podcast summary created with Snipd AI

Quick takeaways

  • Federal Reserve Chair emphasizes shift to 'neutral' interest rates around 2.5-3% from near-zero rates.
  • NATO allies increase defense spending, emphasizing collective defense efforts amid global challenges.

Deep dives

Federal Reserve Chair Jay Powell's Discussion on Interest Rates and Economy

Federal Reserve Chair Jay Powell discusses the concept of the neutral rate of interest, emphasizing its role in maintaining stable economic conditions. He highlights the challenge of accurately determining this rate as it is only observable in retrospect. Powell notes that current Fed projections indicate a target rate around 2.5% to 3%, reflecting a shift from the near-zero rates seen previously.

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