# The Fed's New Focus on the Neutral Rate

Page: https://stenobird.com/podcast/the-federal-reserve-podcast-with-fexingo-interest-rates-fomc-meetings-and-monetary-policy-7871696/the-fed-s-new-focus-on-the-neutral-rate
Text version: https://stenobird.com/podcast/the-federal-reserve-podcast-with-fexingo-interest-rates-fomc-meetings-and-monetary-policy-7871696/the-fed-s-new-focus-on-the-neutral-rate.md
Podcast: [The Federal Reserve Podcast with Fexingo: Interest Rates, FOMC Meetings, and Monetary Policy](https://stenobird.com/podcast/the-federal-reserve-podcast-with-fexingo-interest-rates-fomc-meetings-and-monetary-policy-7871696)
Published: 2026-06-13T18:44:49+00:00
Episode link: https://audio.fexingo.com/business/the-federal-reserve-podcast/episode-0050.mp3
Audio file: https://audio.fexingo.com/business/the-federal-reserve-podcast/episode-0050.mp3
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JSON: https://stenobird.com/v1/public/podcasts/the-federal-reserve-podcast-with-fexingo-interest-rates-fomc-meetings-and-monetary-policy-7871696/episodes/the-fed-s-new-focus-on-the-neutral-rate
Duration seconds: 343

## Resource

With the effective fed funds rate at 3.63% and inflation running hot at 4.2%, the Federal Reserve faces a tricky question: how high is 'high enough'? In this episode, Lucas and Luna break down why the neutral rate of interest — R-star — has become the Fed's obsession in mid-2026. They explore how the post-pandemic economy, energy shocks, and structural changes have likely pushed R-star higher, complicating the FOMC's tightening path. Drawing on recent data including the ten-year breakeven inflation rate of 2.31% and the surprise ECB rate hike, they explain why estimating the neutral rate is more art than science — and why getting it wrong could either keep inflation too high or choke off growth. A focused look at the one number that might matter most to the Fed right now. #FederalReserve #MonetaryPolicy #NeutralRate #RStar #InterestRates #FOMC #Inflation #Economics #CentralBanking #FedFundsRate #ECB #BreakevenRate #CPI #EnergyShocks #TighteningCycle #FexingoBusiness #BusinessPodcast #Economy Keep every episode free: buymeacoffee.com/fexingo

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