Vanguard, the mutual-fund powerhouse with $8.1 trillion in assets under management as of August, said the Fed may need to continue hiking interest rates further than many people expect and keep borrowing costs high through late 2024. Joseph Davis, chief global economist and head of the Vanguard Investment Strategy Group, cited a substantially higher neutral rate of interest since the 2007-2009 recession as one big reason why the central bank might need to hike one to three more times after pausing on Wednesday. A neutral rate of interest is the level of monetary policy that’s neither stimulating nor restricting economic…
