Powell Says Fed Is ‘Meaningfully Above’ Long-Term Neutral Rate

Federal Reserve Chair Jerome Powell said the central bank still has a ways to go in reducing its benchmark interest toward its longer-run level.

“I would say we are meaningfully above it,” Powell said Wednesday, referring to the so-called neutral rate, which doesn’t stimulate nor restrict economic activity. “I have no illusion anyone knows precisely what that is.”

Read More: What’s the Fed’s ‘Neutral’ Rate? Why Does It Matter?: QuickTake

Powell earlier said the central bank can be patient with its approach to modifying interest rates, arguing that policy is currently well-positioned to deal with risks ...