According to reports from Jin10 data, Chicago Federal Reserve President Austan Goolsbee and Federal Reserve Governor Michelle Bowman expressed differing views on the level of neutral interest rates in their speeches this week. Goolsbee believes that the Federal Reserve needs to cut interest rates further to reach a neutral rate, while Bowman thinks that current policy may already be close to a neutral stance.
Will Compernolle of FHN Financial pointed out that the range for the neutral interest rate estimated anonymously by Federal Reserve officials in September was 2.375% to 3.75%, so the divergence is not surprising.