Former top Fed policy staffer suggests neutral rate could be 5%

The Wall Street Journal report on a paper from a “former top Fed staffer”.

Federal Reserve officials have time before they need to agree on what constitutes a neutral level for monetary policy
but neutral may well be a lot higher than central bankers currently expect
officials appear to see something around 2.5% as neutral, inflation expectations data suggests neutral could be much higher, like 5% if the data is accurate.

Link to the article here, it is gated though. 

Federal Open Market Committee decision this week, earlier posts:Preview – BoA are focused on Powell’s press conference following the FOMC statementBarclays FOMC preview – 50bp hike already signaled – eyeing Powell’s press conference

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