Fed Chairman Says Interest Rates Are Just Below Estimates of Neutral

Fed Chairman Says Interest Rates Are Just Below Estimates of Neutral https://images.wsj.net/im-39357/social

Fed Chairman Says Interest Rates Are Just Below Estimates of Neutral






Federal Reserve Chairman Jerome Powell ignited a market rally Wednesday by saying interest rates are “just below” broad estimates of a level considered neutral, a setting designed to neither speed nor slow economic growth.

Investors welcomed his remarks because they appeared to retreat from a comment he made in early October describing the Fed’s benchmark rate as a “long way” from a neutral level—which implied to some listeners that Mr. Powell planned to keep raising rates for a while. His remarks Wednesday appeared to suggest...

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