ChainCatcher reported that Chicago Fed President Austan Goosby and Fed Governor Michelle Bowman expressed very different views on the theoretical neutral interest rate level, which refers to the interest rate level that allows the Fed to achieve a balance among its economic goals.
Goosby emphasized that the Fed needs to cut interest rates further to reach this level - he called the interest rate "much lower than we are currently at."
Bowman said, "We may be closer to a neutral policy stance than we currently think." Will Componole of FHN Financial pointed out that given that in the September forecast, anonymous Fed officials estimated that the neutral interest rate range was between 2.375% and 3.75%, it is not surprising that such a divergence has occurred.