According to Jinshi Data, Chicago Fed President Austan Goosby and Fed Governor Michelle Bowman expressed different views on the neutral interest rate level in their speeches this week. Goosby believes that the Fed needs to further cut interest rates to reach the neutral interest rate, while Bowman believes that the current policy may be close to a neutral position.
Will Companole of FHN Financial noted that anonymous Fed officials in their September forecasts had estimated the neutral rate to be in the range of 2.375% to 3.75%, so the divergence was not surprising.