Federal Reserve Governor Waller suggests potential future rise in 'R-star' interest rate after years of decline.

Federal Reserve Governor Christopher Waller stated that a key underlying interest rate may rise in the future after years of decline, but it's too early to determine if this will occur. The interest rate, referred to as 'R-star', neither stimulates nor restricts the economy when inflation is at the U.S. central bank's target. Waller mentioned that factors such as strong demand for U.S. government debt contributed to the decline in R-star, though it's uncertain if this trend will reverse.

May 24, 2024
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