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MNI BRIEF: Fed's Powell Says Short-Run Neutral Rate Higher

Fed Chair testifies before the House of Representatives on Capitol Hill.

MNI (WASHINGTON) - Federal Reserve Chair Jerome Powell said Wednesday the short-term neutral rate that neither stimulates or slows the economy likely moved higher. 

"Clearly interest rates, the neutral interest rate, must have moved up at least in the short term," he said, adding that policy is restrictive nonetheless. (See MNI INTERVIEW: Fed Will Stay Patient On Rocky Road To 2%-Evans)

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MNI (WASHINGTON) - Federal Reserve Chair Jerome Powell said Wednesday the short-term neutral rate that neither stimulates or slows the economy likely moved higher. 

"Clearly interest rates, the neutral interest rate, must have moved up at least in the short term," he said, adding that policy is restrictive nonetheless. (See MNI INTERVIEW: Fed Will Stay Patient On Rocky Road To 2%-Evans)

Keep reading...Show less