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Mnuchin: Not Urging Fed to Cut Rates, Just Referring to Model Results
Summary: According to sources, US Treasury Secretary Mnuchin stated that he is not demanding a series of rate cuts from the Federal Reserve, but simply pointing out that models show the neutral rate will be about 1.5 percentage points lower. Mnuchin said: 'I did not tell the Fed what to do.' He was referring to comments ...
According to sources, US Treasury Secretary Mnuchin stated that he is not demanding a series of rate cuts from the Federal Reserve, but simply pointing out that models show the neutral rate will be about 1.5 percentage points lower. Mnuchin said: 'I did not tell the Fed what to do.' He was referring to comments made the previous day about the Fed potentially starting a series of rate cuts. Mnuchin said on Thursday: 'What I said is that to reach the neutral rate, it would require a cut of about 150 basis points. If you believe in the neutral rate, I think there is room for a series of rate cuts, but I am not calling for rate cuts, I have not called for that, I am just saying the model calculates the neutral rate to be about 150 basis points lower than the current level.'
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Link: Mnuchin: Not Urging Fed to Cut Rates, Just Referring to Model Results [Copy]
