The rate is. You can characterize it as in the high end of neutral or you can characterize characterize it as perhaps mildly restrictive, even modestly restrictive. No one knows for sure, but it's in that range where it's somewhere around the borderline between restrictive and not.Remember that that a big part of the disinflation we're looking for is just the runoff of when tariffs are put into place. Of course, what they do is they raise prices to some extent. To the extent those prices are, the tariffs ar ...

Economic Policy Insights - The current economic conditions do not warrant a shift away from a restrictive policy setting, indicating that the policy remains at a clearly restrictive level [1] - The labor market has shown solid conditions with strong job creation, but recent revisions to job creation numbers suggest a potential softening in the labor market [2] - The balance of risks between inflation and economic growth is moving toward greater equality, suggesting a potential shift toward a neutral policy stance [3] Interest Rate Decisions - There was no widespread support for a larger than 25 basis points rate cut during the recent meeting, indicating a cautious approach to monetary policy adjustments [4] - The company has implemented significant rate hikes and cuts in the past five years, typically in response to misalignments in policy, but currently feels that the existing policy is appropriate [5] - The company is reacting to evidence of softening in the labor market and lower job creation levels, which may warrant a change in policy direction [6]

Economic Policy Insights - The current economic conditions suggest that a restrictive policy setting may no longer be warranted, although the policy has remained at a restrictive level throughout the year [1] - The labor market has shown solid conditions with strong job creation, but recent revisions indicate a decline in job creation numbers from April to August, shifting the risks towards inflation [2] - The balance of risks between inflation and economic growth is moving towards equality, indicating a potential shift towards a neutral policy stance [3] Interest Rate Decisions - There was no widespread support for a 50 basis point rate cut, reflecting a consensus that the current policy is appropriate given the economic context [4] - The company believes that the policy has been effective this year, with a cautious approach to changes based on evolving tariffs, inflation, and labor market conditions [5] - The recent evidence of softening in the labor market suggests that while risks are not fully balanced, they are moving towards balance, justifying a change in policy direction [5]