As you know, a balance rests on a fulcrum, which is the central point around which balance can be achieved. In monetary policy, this fulcrum is another one of those unobserved concepts, like potential growth; it is called the neutral rate.
The neutral rate is the interest rate that neither speeds up nor slows down the economy; it is the level at which the policy rate will settle when inflation is at target and output is at potential. This is a concept many of our close watchers have questions about. 9 These data are not seasonally adjusted.