Market participants are split on whether the appropriate federal funds rate should remain near current levels or move higher by year-end

"Rajan's first major challenge is expected to involve addressing interest rates that remain above the Federal Reserve's target. According to a PTI report, his role is likely to include examining the central bank's balance sheet."

"many participants indicated that the appropriate level of the federal funds rate would be within or slightly below the current target range at the end of this year...many other participants, however, assessed that the appropriate level of the federal funds rate would be above the current target range"