Powell's tough stance: the neutral interest rate has already risen in the short term and will be taken into account in the next policy assessment

Golden data July 10 news, Federal Reserve Chairman Powell said that the neutral Interest Rate has risen at least in the short term. Institutional analysis believes that a higher neutral Interest Rate means a higher long-term policy Interest Rate. At present, this is not surprising, so it is unlikely to affect the market in the short term. The time the policy Interest Rate has been maintained at a high level has exceeded the initial expectations, as inflation and labor market reactions have been slow. However, Powell added that this is a question that the Federal Reserve will study in the next policy assessment starting at the end of this year, so it may affect future long-term Interest Rates. Therefore, Powell's view on the neutral Interest Rate is relatively tough, while experts from the Federal Reserve and New York Fed President Williams continue to argue that the neutral Interest Rate has not been raised.