MNI BRIEF: Fed's Powell Says Neutral Rate Has Likely Risen

MNI (WASHINGTON) - The neutral rate of interest than neither stimulates nor slows economic growth has likely moved higher in recent years, making it less likely that borrowing costs will return to the rock-bottom lows that followed the global financial crisis of 2008, Fed Chair Jerome Powell said Monday. 

"The neutral rate is probably higher than it was during the inter-crisis period. So rates will be higher," he told the Economic Club of Washington.  (See MNI INTERVIEW: U.S. Consumers Expect More Disinflation-UMich)