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MNI PODCAST: FedSpeak - Reis Sees Slow Fed Cuts, Higher R-Star

Federal Reserve
EXECUTIVE SUMMARY
  • London School of Economics economist Ricardo Reis tells MNI the Fed’s rate cuts will be gradual because unemployment is unlikely to rise significantly.
  • Reis, also academic consultant at the Richmond Fed, says inflation is on its way to 2% but there is a greater risk of upside shocks to inflation than downside ones.
  • Reis says a higher neutral rate of interest, perhaps around 4%, means the Fed won’t need to reduce borrowing costs very much to move away from restrictive policy.

Listen to the full podcast here.

MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com
MNI Washington Bureau | +1 202 371 2121 | pedro.dacosta@marketnews.com

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