Why the Price of Money Surged in the Last 6 Years

Podcast : Odd Lots (LS 63 · TOP 0.1% what is this? ) Episode : Why the Price of Money Surged in the Last 6 Years Pub date : 2025-10-09 Get Podcast Transcript → powered by Listen411 - fast audio-to-text and summarization What changed between 2019 and 2025? Why are interest rates so much higher? Why does it seem virtually unfathomable that the Fed will return to ZIRP anytime soon? Why do investors expect this rate cut cycle to be so shallow? The answer, theoretically, is that the neutral rate of interest has gone up. But what is the neutral rate of interest, and why has it moved? On this episode, we speak with Jamie Rush of Bloomberg Economics and Tom Orlik, the Chief Economist at Bloomberg Economics. They, along with Bloomberg's Stephanie Flanders, are the editors of a new book titled The Price of Money: A Guide to the Past, Present, and Future of the Natural Rate of Interest , in which they attempt to directly identify what the neutral rate of interest actually is. We discuss the big changes over the last several years, including deglobalization, demographics, and datacenters, that are pushing this number higher. Read more: Trump’s Contradiction: Demanding Steep Rate Cuts for a ‘Booming’ Economy Fed Set to Drive Global Rate Cuts as Europe Shifts to Pause Only http://Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox each week, plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots See omnystudio.com/listener for privacy information. The podcast and artwork embedded on this page are from Bloomberg, which is the property of its owner and not affiliated with or endorsed by Listen Notes, Inc.