Believes the neutral rate is higher than it used to be in the past The Funds rate is high relative to where inflation is currently Always want to keep monetary policy moving to where the economy is going.There is room to go in nominal funds rate before reaching the neutral rate. Fed has to be more forward-looking than the marketI don’t think that much has changed in the economyA Fed policy maker time horizon is more longer termI would cut rates by 25 bps. A stop-and-go is not a good look for the Fed.The recent data has not changed the medium-term economic outlook
This article was written by Greg Michalowski at www.forexlive.com.
