Some recent estimates of the current value of the neutral real federal funds rate stand close to zero percent.4 With the actual value of the real federal funds rate currently near minus 1 percent, a near-zero estimate of the neutral real rate means that the stance of monetary policy remains moderately accommodative, an assessment that is consistent with the fact that employment has been growing at a pace—around 180,000 net new jobs per month—that is notably above the level estimated to be consistent with the longer-run trend in labor force growth —between 75,000 and 125,000 per month.5 As I will explain, this policy stance seems appropriate given that the underlying trend in inflation appears to be still running somewhat below 2 percent.
Won’t the average customer who is not tech savvy be deterred from doing electronic banking in the light of the above threats, which only grow in variety in times to come? A person need not be tech savvy, in its true sense, to do his payment transactions in the electronic mode.