Analysts: There are serious differences within the Federal Reserve on the neutral interest rate level

Analyst Chris said that the disagreement on long-term interest rate forecasts does highlight that there is no consensus among the committee members on the true definition of the neutral interest rate. But one thing that almost everyone agrees on is that it is higher than before the COVID-19 pandemic. Economists attribute this to a variety of reasons, including the increase in the federal debt burden. The gap between the lowest and highest long-term interest rate forecasts is as high as 1.5 percentage points, from 2.4% all the way up to 3.9%. (Jinshi)