Fed cut their short term rate so the rate back to its neutral position.
I think the rate should match to GDP growth + inflation when economy is neither bad nor good. But Fed adjust the rate upward/downward when economy maybe off the track.
during past several years, Fed has cut the rate agressively along the tech bubble crashed, 911 and so on, in order to keep the economy from falling. Now that economy (seemingly) recovered, Fed should remove the accomodation (increase the rate) they gave to the economy at "measurable step" ..
