Bloomberg Surveillance · Thursday, July 2, 2026
The Federal Reserve appears to be at a neutral interest rate, allowing the economy to navigate ongoing technological transformations. While some sectors like housing feel restrictive, the overall economy and consumer spending show decent balance, suggesting a period of sustained stability rather than immediate rate hikes or cuts.
“I think that's probably right. And by the way, the technological transformation doesn't really depend on the level of interest rates today, because that's going to happen regardless of whether rates are plus or minus twenty five basis points from here. So realistically we're in an environment where interest rates are largely neutral.”
“Consumers are spending fairly well. It's been a decent, call it two percent trend in spending. It's an economy that is in pretty decent balance, and I think that will continue through much of the summer and the rest of the year.”