What is the relationship between interest rates and inflation according to the text?
Summers Says Fed Will Need to Raise Rates to 4%-5% to Control Inflation

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1.
OPEN ENDED QUESTION
3 mins • 1 pt
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2.
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3 mins • 1 pt
What assumptions does the Fed make regarding long-term inflation and the neutral rate?
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3.
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How much do interest rates need to be raised to stay neutral in the current inflation environment?
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4.
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What is the implication of raising interest rates by the same amount as inflation?
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5.
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What levels of interest rates does the speaker believe will be needed in the future?
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