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Neutral rate

Fed steers interest rates on path toward "neutral"

by Sabri Ben-Achour
Jun 3, 2024
The central bank seeks the right rate for controlling inflation while promoting economic growth. It's a moving target.
The interest rate we'd have in "normal" times is called the neutral rate. But it's an elusive, theoretical idea that changes with economic conditions. Above, Fed Chair Jerome Powell.
Chip Somodevilla/Getty Images
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