Federal Reserve Bank of San Francisco President Mary Daly said the neutral interest rate could be higher now than before the pandemic, though rates would not stay as high as they are now indefinitely.
“5% is not going to be the new neutral. There’s no evidence that that will be the new neutral — that’s still the policy rate trying to fight back high inflation,” Daly said Tuesday at a town hall event in Chicago, coordinated by the Chicago Council on Global Affairs.