August 28, ,2023 – Chief Economist and Managing Director, Jeanette Garretty appeared on Bloomberg Daybreak: Australia to discuss outlook for the US Economy and review Fed Chair Powell’s speech at the Jackson Hole Economic Symposium. “We don’t know really what that neutral rate is. And that’s what I think the market is starting to absorb once again – which is that if these rates are very restrictive, but the US economy is still growing very robustly (which it is), then maybe that neutral rate is not what you thought it was, maybe it’s higher, which then feeds into the narrative that interest rates will stay higher for longer,” says Garretty. “And that’s of course, what was roiling the markets a bit early Friday and is still going to be very much on people’s minds this week.” Watch here: https://tinyurl.com/2p9xy34j
