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Fed Faces Debate About Rising Neutral Rate -- Market Talk

Fed Faces Debate About Rising Neutral Rate -- Market Talk

Dow JonesDow Jones2026/10/01 22:35

2233 GMT [Dow Jones]--Recent data reinforce that U.S. economic momentum is accelerating and becoming increasingly broad-based. It is posing crucial questions for the Federal Reserve. This week, data have revealed solid growth in manufacturing and construction, typically interest-rate sensitive sectors, says ANZ in a note to clients. The U.S. consumer is also likely in better health than previously thought. Continued signs of strengthening demand pose a challenge to policymakers' assessment that the stance of monetary policy remains restrictive and suggests that the neutral rate is rising, ANZ adds. (james.glynn@wsj.com; @JamesGlynnWSJ)

(END) Dow Jones Newswires

October 01, 2026 18:35 ET (22:35 GMT)

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