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Final Question From MNI On More Restrictive Real Rates Being Built Into The SEP

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  • Q (from MNI's Jean Yung): Is the real rate becoming more restrictive built into the SEP projections, with inflation coming down seemingly making it more restrictive?
    • A: We do know that. I wouldn't see the committee cutting rates until we're confident that inflation is moving down in a sustained way. That would be my test. I don't see us having a clear and precise understanding of what the neutral rate is and what real rates are, so that it would mechanically happen. For cutting rates, it will be a question of do we feel confident that inflation is coming down in a sustained way.
  • Press conference Ends.

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