• Fed’s Mester: Neutral interest rate is 3%

Market news

19 February 2019

Fed’s Mester: Neutral interest rate is 3%

Mester answered questions from the audience and media after her speech in Delaware.


  • Comfortable slowing or ending balance sheet roll-off in 2019
  • If she was making decisions on her own, she would favor slowing reinvestment of the Fed's maturing securities
  • Fed would want to communicate balance sheet plans well in advance
  • Flexible inflation target "works well"

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