Former top Fed policy staffer suggests neutral rate could be 5%

The Wall Street Journal report on a paper from a "former top Fed staffer".

• Federal Reserve officials have time before they need to agree on what constitutes a neutral level for monetary policy
• but neutral may well be a lot higher than central bankers currently expect
• officials appear to see something around 2.5% as neutral, inflation expectations data suggests neutral could be much higher, like 5% if the data is accurate.

Link to the article here, it is gated though.

Federal Open Market Committee decision this week, earlier posts:

• Preview - BoA are focused on Powell's press conference following the FOMC statement
• Barclays FOMC preview - 50bp hike already signaled - eyeing Powell's press conference