In recent speeches, Chicago Fed President Austan Goolsbee and Federal Reserve Governor Michelle Bowman presented contrasting views on the neutral interest rate level. Goolsbee argued that the Fed would need to lower rates further to reach this level, which he described as “well below where we are currently.” In contrast, Bowman stated that the neutral policy stance may be closer than previously thought.
This difference in opinion aligns with anonymous predictions by Fed officials in September, who estimated the neutral rate range to be between 2.375% and 3.75%.
