Policy rates should fall to -5%: SF Fed's Rudebush

The federal funds target would have to fall to -5% for the benchmark rate to be in line with the central bank's Taylor rule, a senior San Francisco Fed official has said.

Glenn Rudebush, a senior vice president at the San Francisco Federal Reserve and an associate director of research, said that if the Federal Open Market Committee (FOMC) acted according to its behaviour in the recent past, and the target could fall below zero, then rates would fall far into negative territory.

In a research note

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