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.