Are ‘Neutral’ Interest Rates Returning to the 1980s? | Presented by CME Group

[Music] On September 17th, the Federal Reserve is expected to deliver a 25 basis point rate cut, signaling a resumption of the easing cycle that was interrupted in December of 2024. But is this good news. Well, that depends on a couple things.Top on the list is whether or not the rate cut could reignite inflation. Chairman Powell has long contended that the neutral rate, which is the undefined level of an interest rate that would be neither stimulative nor restrictive, is somewhere considerably lower than t ...