Fed’s Waller Says He Still Thinks Neutral Rate Is Relatively Low
- View on neutral rate hasn’t changed in near term, Waller says
- Fed governor says US fiscal trajectory could push it higher
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Federal Reserve Governor Christopher Waller said he still thinks the neutral interest rate is relatively low, though he warned that unsustainable fiscal spending could alter that trend.
“In the near term I don’t see anything that has really caused me to change my view that r-star is relatively low,” Waller said Friday on the sidelines of the Reykjavik Economic Conference in Iceland. “It could change in the future, but that’s what we need to keep an eye on.”