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Powell Asked What Would Be A Sufficiently Restrictive Fed Funds Rate

FED
  • Q: In May you said risks were getting closer to being in balance, is that case? What would be a sufficiently restrictive funds rate?
    • A: Over time as we've moved from rates at zero to 5% with an SEP calling for additional hikes, we've moved much closer to our destination which is sufficiently restrictive rates. I still think and my colleagues agree that the risks to inflation are still to the upside. We don't think we're there with inflation yet, because we're just looking at the data, and you aren't seeing a lot of progress on core inflation over the last year.

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