Fed Presidents Seek to Prevent Inverted Yield Curve

Some regional bank presidents want “Powell put,” agreement to cut rates if bond yield curve inverts.

By Rich Miller | July 24, 2018 at 03:37 PM

yield-curve inversion the Fed will keep raising rates

per se

Higher Neutral

Federal Open Market Committee (FOMC) participants pegged the neutral funds rate—the rate that neither promotes nor holds back growth—at 2.9 percent, according to their median projection released in June. Former Fed official and Cornerstone Macro LLC partner Roberto Perli said the markets seem to place the neutral rate somewhat higher, at around 3.25 percent.

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Interest Rates

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