The neutral interest rate and effects on consumer lending.

Mar 13 (edited) • Economics

Hello Simon and crew! While it is clear that cuts to the overnight rate are useless and true importance is within fedspeak (rapid incorporating of key phrases into asset prices), is it wise to expect better lending opportunities of any kind (e.g. auto and credit lines) at the lower 80 percentile of earners should r star move closer to the funds rate because of inflation expectations. People are quick to focus on the rate at which money is lended when they aren't in any kind of position to take on more debt. I noticed an increase in offers for both before and after the fed meeting last year, even with my poor credit. Thanks!

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