Um When we when we talk about the neutral Rate we're really talking about the rate That neither pushes neither pushes Economic activity higher nor slows it Down so it's a concept really it's not Something we can identify with any Precision so we estimate it Within broad bands of uncertainty and And the current estimates on the Committee are sort of two to three Percent and also that's a longer run Estimate that's that's an estimate for An economy that's at full employment and Two percent inflation so Really the way really what we're doing Is we are we're raising we're raising Rates expeditiously to the what we see As the broad range of Plausible levels of of uh Of of neutral but we know that there's Not a bright line drawn on the road that Tells us when we get there so we're Going to be looking at financial Conditions right our our policy affects Financial conditions and financial Conditions affect the economy so we're Going to be looking at the effect of our Policy moves on financial conditions are They tightening appropriately and then We're going to be looking at the effects On the economy and we're going to be Making a judgment about whether we've Done enough
To get us on a path to restore price Stability it's that so If that path happens to evolve levels That are Higher than estimates of neutral then we Will not hesitate to go to the to those Levels we won't but but again it's a There's a there's a sort of false Precision in in the in the discussion That we as policy makers don't really Feel you know it's it's you're going to Raise rates and you're going to be Kind of Inquiring how that is affecting the Economy through financial conditions And of course if if Higher rates Are required then we won't hesitate to Deliver them
