Fed's Powell Says Neutral Rate May Be Higher

The transcript discusses the unexpected strength of the economy despite rising interest rates. It explores various explanations, such as strong household and business balance sheets, and questions the sustainability of current consumer savings rates. The discussion also touches on the possibility of a higher neutral interest rate and whether current policies have been sufficiently restrictive. The transcript concludes with an analysis of the labor market, noting progress on inflation and predicting moderated growth in the coming year.

What uncertainties exist regarding the sustainability of economic growth?

What are the forecasts for economic growth in the coming year?