Published in The Wall Street Journal:
Mr. Levy describes the Fed’s permanent problem: It doesn’t and can’t know what the natural rate of interest is. Everyone should pity the members of the Federal Open Market Committee, who must inwardly confess that they can’t know the answers, yet have to play their parts in the Fed melodrama nonetheless.
Alex J. Pollock
Senior fellow, Mises Institute
Lake Forest, Ill.
Appeared in the March 14, 2024, print edition as ‘Fed Doesn’t Know the Natural Rate of Interest’.
