Here's Why the Fed Needs to Go Slow on Interest-Rate Increases
- San Francisco Fed research shows natural rate of interest low
- Monetary conditions `remain relatively tight' even now
Ken Langone: Fed Lacks Backbone
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U.S. monetary conditions are still tight, even as the Federal Reserve holds interest rates near zero, according to new research from the central bank that challenges the assertion of Fed officials including Chair Janet Yellen that policy is highly accommodative.
San Francisco Fed senior economist Vasco Cúrdia found that the natural interest rate, or the inflation-adjusted rate consistent with an economy at full employment and stable inflation, is “very low” by historical standards.