Fed's Williams: Monetary policy continues to be restrictive, we're still in a position to put downward pressure on inflation | Metals Mine

  • Fed's Williams: Monetary policy continues to be restrictive, we're still in a position to put downward pressure on inflation

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Luxyus
Sep 29, 2025 1:10pm
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0.75?!
Luxyus
Sep 29, 2025 1:39pm
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the exact formula is: R = (1 + r) / (1 + i) - 1.
thank you, teacher of my boots.
Trader#A86B
Sep 29, 2025 1:08pm
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"Restrictive"

Real neutral rate is probably -5% if not more.

As the Fed keeps failing miserably at both mandates, the trust in the USD will continue to decline.

Investors are losing money in bonds and it's reasonable to expect that the sell-off will continue across the board, not just in US.
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Trader#A86B
Sep 29, 2025 1:16pm
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Quoting Luxyus
0.75?!
FFR - Inflation = ~0.75% (+0.75%, in other words restrictive)

However, inflation is definitely not in the range or 3 and something %, but much higher. Meaning, neutral rate is in negative as inflation rate is higher/much higher than FFR (federal funds rate).
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Trader#A86B
Sep 29, 2025 2:15pm
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Just simplifying for folks...
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