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Analysis suggests Federal Reserve Chairman Warsh is steering decision-making logic towards monetarism, abandoning the neutral interest rate anchor.
Analysts point out that Warsh's characterization of the neutral rate as a purely academic discussion is akin to dismantling the Federal Reserve's policy positioning system, which has been in operation for over a decade. He is guiding the Fed's decision-making logic towards monetarism, abandoning the neutral rate in favor of focusing on the growth rate of the money supply.
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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