The Fed Wants to Raise Rates Quickly, but May Not Know Where to Stop

Federal Reserve Chairman Jerome Powell is shifting monetary tightening into a higher gear. His goal sounds straightforward—lift interest rates to “neutral,” a setting that neither spurs nor slows growth.

But there’s a catch: Even in normal times, no one knows where this theoretical level is. And these aren’t normal times. There are good reasons to think the ground beneath the central bank’s feet is shifting and that, after accounting for elevated inflation, neutral may be higher than officials’ recent estimates.

Visit to Dallas, flight full, hotel full, largest shopping mall completely packed, consumer not slowing down yet

0%….that should be the target always.

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