Search for The Neutral Fed Funds Rate Goes Viral

Former Global Chief Economist for JPMorgan Chase & Ph.D in Economics

There was a toxic maelstrom on Wall Street after Fed Chair Powell stated that the Federal Funds rate had reached a neutral position.   Mohamed El-Erian argued that the Federal Funds rate needed to rise an additional 50 basis points to attain that status.   Lawrence Summers (former U.S. Treasury Secretary) said the view was “wishful thinking," and "analy…