Deutsche Bank economist says Fed Funds Rate is 100 basis points too low
Deutsche Bank's Chief US Economist Matthew Luzzetti claims that the Federal Reserve's current funds rate is 100 basis points too low. He argues that the Fed has cut rates too aggressively, creating a significant gap between actual policy and standard recommendations. Luzzetti's projections suggest that the neutral rate should be around 3.25%-3.5%, indicating that the Fed's easing may be excessive.
- ▪Matthew Luzzetti argues that the Federal Reserve has overshot its target with the current funds rate.
- ▪The Fed's recent cuts have brought the target range down to 3.5%-3.75%.
- ▪Luzzetti suggests that the neutral rate should be closer to 3.25%-3.5% by late 2025 or early 2026.
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Deutsche Bank economist says Fed Funds Rate is 100 basis points too low Matthew Luzzetti argues the Federal Reserve has cut too aggressively, creating a gap between actual policy and what standard rules would recommend. Share Add us on Google by Editorial Team May. 27, 2026 window.sevioads = window.sevioads || []; var sevioads_preferences = []; sevioads_preferences[0] = {}; sevioads_preferences[0].zone = "01f21ccf-2092-46b1-9ac7-8c44cc782e0f"; sevioads_preferences[0].adType = "native"; sevioads_preferences[0].inventoryId = "c5700508-581b-472c-8fdd-a931cdbfc8e1"; sevioads_preferences[0].accountId = "1e47efc1-ec2d-4fca-a8b9-354e249e5095"; sevioads.push(sevioads_preferences); Deutsche Bank’s Chief US Economist Matthew Luzzetti has a message for the Federal Reserve: you’ve overshot.
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