Breitbart Business Digest: Is the Fed’s Monetary Policy Still Too Loose?

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The Federal Open Market Committee meeting minutes released on May 22 mentioned “various officials” worrying that rates might not be as restrictive as thought—a bit of a mystery at the time.Federal Reserve Bank of Dallas President Lorie K. Logan participates in the Federal Open Market Committee meeting in Washington, DC, on January 31, 2024. . That, in turn, refers to an unobservable interest rate that is neither accommodative nor restrictive.

Federal Reserve Bank of Minneapolis President Neel Kashkari participates in the Federal Open Market Committee meeting in Washington, DC, on January 31, 2024. Williams focused on the broad context in which r-star should be considered, noting that factors like global financial conditions and demographic changes play a critical role. He cautioned against. Waller, echoing this sentiment, reiterated that while fiscal policies and global demand for safe assets are important, there is no clear indication that r-star has risen significantly.has been the clearest on this issue.

 

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