The Fed Is Restrictive in Their Mind

There's an idea out there that the Fed will be not going back to zero. But I just want to be clear about what Williams is saying, because the Fed looks at things in a different way. What if I told you that the Fed plans to cut its nominal rate, but there's a way to measure it that shows real rates actually increase? If you base that on their projection for PCE next year versus their projection for their nominal rate this year next year, it goes down by three tenths while they cut 100 basis points. So even if they stop tightening, yeah. In the Fed's mind, it is not really getting that much less restrictive.