You need a PLUS account to view this content. Try one month of PLUS for FREE.
Already have an account? log in
Fed Cuts May End With Rates Still Technically ‘Restrictive’
Early Monday, while documenting Goldman's call for the commencement of Fed cuts from Q2 2024, I said the bank touched on several key policy debates in the course of sketching the contours for a prospective easing cycle.
One of those debates is the neutral rate discussion. Goldman expects the Fed to stop cutting when the funds rate is 3-3.25%, which the bank's David Mericle noted is "above the FOMC’s 2.5% median longer run dot."
That's important. I've repeatedly pointed to the distinct possib
