Markets expect the Fed to continue cutting interest rates, moving toward a stance that neither restricts nor promotes economic activity. Barring some compelling evidence of overheating, I think the fed funds rate is justified in continuing to fall. How quickly this will happen will depend on the outlook and circumstances. But it has been very clear to me throughout this process that we are on a path that will lead to rate cuts closer to what you might call neutral. Individual forecasts for the neutral interest rate are close to the official median forecast, which was 2.9% in September. On Tuesday, the Federal Reserve will release the minutes of the November 6-7 meeting of the Federal Open Market Committee (FOMC), which sets interest rates. At the meeting, policymakers cut the central bank's benchmark interest rate by 0.25 percentage points, following a 0.5 percentage point cut in September. Several officials urged caution about future rate cuts, given the continued resilience of the U.S. economy and recent firm inflation data. Federal Reserve Chairman Jerome Powell said earlier this month that the economy was not signaling that officials needed to rush to cut interest rates. Policymakers will have more data to digest before the December meeting, including the Fed's favored inflation gauge and jobs report. It's important not to "draw any conclusions" from one month's worth of data. I think the overall picture in recent months is that inflation has often been below expectations but not far above the 2% target. ” He was referring to the Fed’s price growth target.