Fed Targets Neutral Interest Rates with Deficit Reduction: Assessing the Soft Landing, Inflation and Labor Market Impacts

BlockBeats news, September 26, U.S. Treasury Secretary Yellen: The Federal Reserve seems to expect interest rates to fall further, and if we continue on this path, interest rates will eventually fall to a neutral level. The deficit must be reduced to keep interest costs under control. The labor market and inflation show that we are on the path to a soft landing. Inflation remains a top priority for U.S. President Biden’s administration, but it has fallen sharply and wages are rising. Hopefully, with the Fed’s actions, the labor market will remain stable. (Jinshi)

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