* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Sunday, September 28, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    TicketSmarter Fall Entertainment Guide – Eastern Illinois University Athletics

    TicketSmarter Fall Entertainment Guide – Eastern Illinois University Athletics

    Cardi B Adds More Dates to Little Miss Drama Tour: ‘Y’all Making Me Work’ – Yahoo

    Cardi B Extends Little Miss Drama Tour: “Y’all Making Me Work

    ‘Today’: Sheinelle Jones Thanks Katie Couric for Support After Husband’s Death – CBS 19 News

    Sheinelle Jones Expresses Heartfelt Thanks to Katie Couric for Support After Husband’s Passing

    Sate your hunger at DBA’s Taste of Downtown – Bakersfield.com

    Indulge Your Cravings at DBA’s Taste of Downtown!

    Caesars Entertainment (CZR): Assessing Valuation After Times Square Casino Setback and Mounting Investor Concerns – simplywall.st

    Caesars Entertainment Faces Times Square Casino Hurdles as Investor Concerns Mount

    Why Hilaria Baldwin Has Found the ‘DWTS’ Process ‘Embarrassing’ At Times – WFXG

    Hilaria Baldwin Opens Up About the Embarrassing Moments on Her ‘DWTS’ Journey

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    From shale to steam: Fossil fuel technology boosts clean geothermal energy – Washington Examiner

    From Shale to Steam: How Fossil Fuel Technology is Powering a Clean Geothermal Energy Revolution

    How Sustainable Technology is Shaping a Greener Future – Technology Magazine

    How Sustainable Technology is Driving the Revolution Toward a Greener Future

    Aurora police hope to add facial recognition technology to crime-fighting tools – CBS News

    Aurora Police Aim to Boost Crime-Fighting with New Facial Recognition Technology

    Autonomous Solutions shows off cutting-edge technology for the public – Cache Valley Daily

    Autonomous Solutions Unveils Cutting-Edge Technology for the Public

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    What are we really gaining from technology? – Fast Company

    What Are We Really Gaining from Technology?

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    TicketSmarter Fall Entertainment Guide – Eastern Illinois University Athletics

    TicketSmarter Fall Entertainment Guide – Eastern Illinois University Athletics

    Cardi B Adds More Dates to Little Miss Drama Tour: ‘Y’all Making Me Work’ – Yahoo

    Cardi B Extends Little Miss Drama Tour: “Y’all Making Me Work

    ‘Today’: Sheinelle Jones Thanks Katie Couric for Support After Husband’s Death – CBS 19 News

    Sheinelle Jones Expresses Heartfelt Thanks to Katie Couric for Support After Husband’s Passing

    Sate your hunger at DBA’s Taste of Downtown – Bakersfield.com

    Indulge Your Cravings at DBA’s Taste of Downtown!

    Caesars Entertainment (CZR): Assessing Valuation After Times Square Casino Setback and Mounting Investor Concerns – simplywall.st

    Caesars Entertainment Faces Times Square Casino Hurdles as Investor Concerns Mount

    Why Hilaria Baldwin Has Found the ‘DWTS’ Process ‘Embarrassing’ At Times – WFXG

    Hilaria Baldwin Opens Up About the Embarrassing Moments on Her ‘DWTS’ Journey

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    From shale to steam: Fossil fuel technology boosts clean geothermal energy – Washington Examiner

    From Shale to Steam: How Fossil Fuel Technology is Powering a Clean Geothermal Energy Revolution

    How Sustainable Technology is Shaping a Greener Future – Technology Magazine

    How Sustainable Technology is Driving the Revolution Toward a Greener Future

    Aurora police hope to add facial recognition technology to crime-fighting tools – CBS News

    Aurora Police Aim to Boost Crime-Fighting with New Facial Recognition Technology

    Autonomous Solutions shows off cutting-edge technology for the public – Cache Valley Daily

    Autonomous Solutions Unveils Cutting-Edge Technology for the Public

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    Amazon to Pay $2.5 Billion in Prime Membership Settlement – The New York Times

    What are we really gaining from technology? – Fast Company

    What Are We Really Gaining from Technology?

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

Column-Fed lifts neutral view; more to come?: McGeever

March 21, 2024
in Business
Column-Fed lifts neutral view; more to come?: McGeever
Share on FacebookShare on Twitter

Column-Fed lifts neutral view; more to come?: McGeever
© Reuters. FILE PHOTO: The Federal Reserve building in Washington, U.S., January 26, 2022. REUTERS/Joshua Roberts/File Photo

By Jamie McGeever

ORLANDO, Florida (Reuters) – Fed policymakers on Wednesday kept their 2024 U.S. interest rate projection unchanged, but the floor for rates once cuts start is moving higher.

In their quarterly Summary of Economic Projections, officials raised the median outlook for 2025 and 2026, and more importantly, increased their longer-run median interest rate outlook above 2.5% for the first time in five years.

The median 2025 and 2026 rate views were raised by three tenths of one percent to 2.9% and 3.1%, respectively, and the longer-run rate was lifted by one tenth of a percentage point to 2.6%.

As the Fed maintained its long-run inflation projection at its 2% target, this implies a slight increase in what policymakers deem to be the neutral real rate of interest, or ‘R-star’, to 0.6% from 0.5%.

These were small changes, particularly to the longer run projection, but they could be significant.

Collectively, they show the Fed recognizes that policy needs to be tighter for longer in the post-pandemic world to get inflation back down to target and keep it there. Seven Fed officials now see a neutral rate of 2.9% or higher, compared with four in December.

Another way of looking at it, with growth consistently surprising on the upside, the post-pandemic U.S. economy is much less responsive to interest rate hikes than it was before March 2020.

These are hardly new revelations – rates futures markets have for some time priced in a higher terminal rate than that implied in the SEP projections – but the highest neutral rate outlook since 2018 is a marker.

The question now is whether that gap between the market-based and Fed view for the terminal rate, the policy rate once the easing cycle ends, begins to converge.

“We’re on a higher glide path,” said Gregory Daco, chief economist at EY. “There’s a more consistent view between the market and the Fed on ending the easing cycle at a level that is higher than what had been consistent with previous cycles.”

BABY STEPS

Fed Chair Jerome Powell downplayed the new neutral rate projection, calling the move “modest” and noting that the long-term horizon is shrouded in huge uncertainty.

In addition structural factors like demographics, productivity trends and cross-border capital flows help determine ‘R-star’, and the pace of change in these can be glacial.

But Powell did say his “instinct” is that interest rates will not return to pre-pandemic low levels.

Again, this is not a particularly revelatory position but it does chime with what the bond and rates markets have been signaling recently.

Breakeven inflation rates on 10- and 30-year inflation-linked Treasury bonds are hovering around 2.3% and drifting closer to 2.5%, a sign that bond traders are not fully convinced the Fed will get inflation back down to target.

Interest rate futures currently imply a terminal rate of 3.7% by the end of 2026, a good bit higher than the Fed’s projected 3.1% over the same time horizon, never mind the long-run neutral view of 2.6%.

With growth running hotter than nearly all forecasts and inflation proving stickier than Fed officials would like, it’s more likely that any convergence will see the Fed’s rate view drift towards the market’s rather than the other way around.

“There is still a clear difference between the market and the Fed in terms of where the terminal rate will land,” says Charlie Ripley, senior investment strategist at Allianz (ETR:) Investment Management.

“The main implication (of this) is that a policy rate set lower than the natural rate for a longer period of time could bring on unintended price instability or unwanted inflation.”

The first step to closing that gap was taken on Wednesday. It may not be the last.

(The opinions expressed here are those of the author, a columnist for Reuters.)

(By Jamie McGeever; Editing by Shri Navaratnam)

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : Investing.com – https://www.investing.com/news/economy/columnfed-lifts-neutral-view-more-to-come-mcgeever-3347183

Tags: businessColumn-Fedlifts
Previous Post

Australian jobless rate dives in Feb as employment resurgent

Next Post

Asian stocks jump as US sticks to rate cut plan

Featured in Functional Ecology – besjournals

Discover the Latest Breakthroughs in Functional Ecology

September 28, 2025
Scientists Identify Simple and Effective Way To Reduce Calorie Intake Without Trying – SciTechDaily

Scientists Identify Simple and Effective Way To Reduce Calorie Intake Without Trying – SciTechDaily

September 28, 2025
Million-year-old skull rewrites human evolution, say scientists – BBC

Ancient Skull Discovery Upends Our Understanding of Human Evolution

September 28, 2025
Corgi Can’t Stop Slipping & TikTok Can’t Stop Laughing – Yahoo

Corgi’s Hilarious Slips Have Everyone Laughing Out Loud

September 28, 2025
From shale to steam: Fossil fuel technology boosts clean geothermal energy – Washington Examiner

From Shale to Steam: How Fossil Fuel Technology is Powering a Clean Geothermal Energy Revolution

September 28, 2025
Nebraska volleyball sweeps Maryland on its way to 12-0 start – The Daily Nebraskan

Nebraska volleyball sweeps Maryland on its way to 12-0 start – The Daily Nebraskan

September 28, 2025
Real-World Data Support Dual Benefit of Biologic Therapy for Hidradenitis Suppurativa – The American Journal of Managed Care® (AJMC®)

Real-World Data Support Dual Benefit of Biologic Therapy for Hidradenitis Suppurativa – The American Journal of Managed Care® (AJMC®)

September 28, 2025
Recession seems far off — that’s the good news. Yet the economy is also far from trouble-free. – MarketWatch

Recession seems far off — that’s the good news. Yet the economy is also far from trouble-free. – MarketWatch

September 28, 2025
TicketSmarter Fall Entertainment Guide – Eastern Illinois University Athletics

TicketSmarter Fall Entertainment Guide – Eastern Illinois University Athletics

September 28, 2025
Is Clover Health (CLOV) Using AI to Shift Its Healthcare Competitive Position? – simplywall.st

Is Clover Health (CLOV) Revolutionizing Healthcare with Cutting-Edge AI?

September 28, 2025

Categories

Archives

September 2025
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
2930  
« Aug    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (841)
  • Economy (861)
  • Entertainment (21,735)
  • General (17,287)
  • Health (9,904)
  • Lifestyle (874)
  • News (22,149)
  • People (863)
  • Politics (871)
  • Science (16,071)
  • Sports (21,361)
  • Technology (15,844)
  • World (843)

Recent News

Featured in Functional Ecology – besjournals

Discover the Latest Breakthroughs in Functional Ecology

September 28, 2025
Scientists Identify Simple and Effective Way To Reduce Calorie Intake Without Trying – SciTechDaily

Scientists Identify Simple and Effective Way To Reduce Calorie Intake Without Trying – SciTechDaily

September 28, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version