BANKING SYSTEM. THAT'S WHERE HE WOULD BE WORRIED. DIDN'T SAY IT WAS A CONCERN RIGHT NOW.>> PERFECT SETUP FOR THE REST OF THIS HOUR. STEVE, THANKS SO MUCH. REALLY APPRECIATE IT.THANKS, STEVE. LIESMAN. SO WHO DO THE MARKETS WANT IN THE FED CHAIR POSITION.WHAT'S REALLY AT STAKE IN THAT RACE AND HOW MUCH RISK IS THERE IN THE AI TRADE RIGHT NOW. LET'S BRING IN PETER BOOCKVAR. HE'S THE CHIEF INVESTMENT OFFICER AT ONE POINT, BFG AND A CNBC CONTRIBUTOR.AND MATTHEW MCLENNAN IS CO-HEAD OF THE GLOBAL VALUE TEAM AT FIR ...

Neutral Rate Drivers - Population growth is typically a major driver of neutral rates, but recent years have seen an unprecedented acceleration [2] - Population growth changed more in the last 3 years than in the previous 30 years [3] - Fiscal deficits also influence neutral rates [1] Monetary Policy Implications - Changes in neutral rate drivers suggest the neutral rate itself may be changing more rapidly [4] - A decreasing neutral rate leads to passive tightening of monetary policy [4][5] - Maintaining a restrictive policy stance for an extended period increases the risk of inducing an economic downturn due to policy lags [6]