But most certainly, the first step toward a more normal policy is to move policy rates off zero, back toward neutral. In saying this, I have no illusions about the challenges of moving away from zero. But in my judgment, the process should begin sooner to avoid the danger of having to over compensate later, as so often happens in policy.
“Changes in U.S. Family Finances from 2013 to 2016: Evidence from the Survey of Consumer Finances,” Federal Reserve Bulletin. Cajner, Tomaz, Tyler Radler, David Ratner, and Ivan Vidangos (2017). “Racial Gaps in Labor Market Outcomes in the Last Four Decades and over the Business Cycle,” Finance and Economics Discussion Series 2017-071. Washington: Board of Governors of the Federal Reserve System, https://www.federalreserve.gov/econres/feds/files/2017071pap.pdf.