Fed Decision Makers Wrestle With So-Called Natural Rate
wsj.com/articles/fed-decision-makers-wrestle-with-so-called-natural-rate-1465751241
U.S. Federal Reserve Chairwoman Janet Yellen and other Fed officials are struggling with the long-term view of monetary policy. Photo: REUTERS
While Federal Reserve officials debate when to next raise short-term interest rates, they also are wrestling with the question of how high to lift them in coming years.
Signs point toward the new normal being much lower than in the past, which has broad implications for when the Fed should tighten monetary policy, how quickly, and how far.