Fed Has Shifted Gear From `Neutral' to `Accommodation': Raskin

The transcript discusses the Federal Reserve's potential shift from a neutral stance to preparing for rate cuts. It highlights market interpretations, the importance of signaling, and the Fed's limited room for large cuts. The discussion includes speculation on the size of potential rate cuts and the strategic considerations involved.

What was the previous posture of the Fed before the recent statements regarding rate cuts?

What does the phrase 'an ounce of prevention is worth a pound of cure' imply in the context of potential rate cuts?

What are the implications of the Fed having limited room to make a significant rate cut?

How does the current Fed funds rate compare to the level needed for maximal accommodation?

What factors might influence the Fed's decision on whether to implement a large rate cut now or hold back for future needs?