Fed's Daley: several rate cuts still to come, 3% could be a good neutral rate guess

Fed Daley believes that the Fed will still have several rate cuts before monetary policy returns to neutral. Daley said of the federal funds rate, ‘The fact is that we are a long way from the level we might reach.’ She added that the nominal neutral rate is likely to rise before the outbreak, but the exact level is hard to predict with precision. She said 3 per cent might be a good guess.