If this view is correct, interest rates would be likely to go lower, and stay low for longer, than investors expect.
Why should the Fed know what the correct interest rate is, any more than a government knows the correct level of rents?
Now it thinks GDP was 1.6% above potential.The correct interest rate depends partly on the inflation target; thus another common criticism of the ECB is that its target of "below, but close to, 2%" is too low.
The market for interest rates should be informative for monetary policy to be effective, and it is in the policy makers' interests that market participants agree on what the "correct" interest rate is.
While this may be the case, it's not always, and you won't get an accurate comparison if you can't enter the correct interest rates.
And if that prediction would turn out to be correct, interest-rate-sensitive stocks, such as the utilities, would not fare well in 2004.
Unfortunately, though, Mr Badawi shows no interest in correcting Dr Mahathir's lamentable record on civil liberties.
Judge Andrew Nicol determined that the public interest in correcting Ferdinand's self-generated but false "family man" image outweighed the clear intrusion on his private life.
With the governing interest of correcting for the real, practical, ethical harms of misguided political-economic policy, Smith devotes his primary attention in Book IV to exhibiting the opulence-impeding flaws of the Mercantile System, the then prevalent theory of political economy in Europe.
Commissioners noted the small size of the study, asked for names of the officers who gave the reported unsatisfactory responses and expressed interest in correcting the problem.
