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Episode 1201Jul 11, 2024

A new normal for interest rates?

And, why the neutral rate is hard for the Fed to pin down.

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WASHINGTON, DC - JULY 9: Chair of the Federal Reserve of the United States Jerome Powell speaks during a Senate Banking, Housing, and Urban Affairs Committee hearing on the Semiannual Monetary Policy Report to Congress at the U.S. Capitol on July 9, 2024 in Washington, DC. Powell in earlier remarks was quoted, "we want to be more confident that inflation is moving sustainably down toward 2% before we start the process of reducing or loosening policy."
WASHINGTON, DC - JULY 9: Chair of the Federal Reserve of the United States Jerome Powell speaks during a Senate Banking, Housing, and Urban Affairs Committee hearing on the Semiannual Monetary Policy Report to Congress at the U.S. Capitol on July 9, 2024 in Washington, DC. Powell in earlier remarks was quoted, "we want to be more confident that inflation is moving sustainably down toward 2% before we start the process of reducing or loosening policy."
Bonnie Cash/Getty Images

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If you’re waiting for interest rates to fall back to the near-zero levels of the 2010s, don’t hold your breath. On Capitol Hill this week, Federal Reserve Chair Jerome Powell told senators that era is probably over. We’ll get into it. And, we’ll unpack why more NATO members are spending more on defense and what’s causing widespread financial strain for hospitals and health systems. Plus, how things could change for federal agencies and lawmakers in a post-Chevron doctrine world.

Here’s everything we talked about today:

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The Team