Sentences with phrase «nominal fed funds rate»

He has in mind the Taylor rule, which would set the nominal fed funds rate based on a single equation:

Not exact matches

In that same interview, he seems to be reaching to square these contradictions, by suggesting that the Fed's current model — targeting 2 % inflation, a Fed funds rate of ~ 3 %, and an unemployment rate of ~ 5 % — is not reliable and that they should maybe move to a different targeting regime, like price - level or nominal GDP targeting.

So, right now, markets are pricing at terminal Fed funds rate, nominal of 2.5 percent.