Powell says that Fed ‘is meaningful’ above the long -term neutral rate ‘

Federal Reserve Chairman Jerome Powell said that the central bank still has a way to lower its benchmark interest towards its long lasting level.

“I would say that we are meaningfully above it,” Powell said on Wednesday, referring to the so -called neutral rate, which does not stimulate nor restricts the economic activity. “I have no confusion that anyone knows what he is.”

Powell earlier stated that the central bank may have patience with its approach to modify interest rates, arguing that the policy is currently well deployed to deal with inflation and labor market risks.

Officials unanimously decided that the rate of federal funds should be placed at 4.25% -4.5% after three consecutive cuts to close 2024.

“With the attitude of our policy it was quite less restrictive and the economy was strong, we do not need to be in a hurry to adjust our policy stance,” he said.