Fed's Williams: Low Interest Rates Still Prevail Despite Pandemic
TL;DR
New research from the Federal Reserve suggests that the pre-pandemic "normal" level of interest rates may not be achievable in the current economic environment. The study argues that structural changes in the economy, such as aging demographics and slower productivity growth, may have lowered the neutral interest rate. This could have implications for the Fed's monetary policy and its ability to respond to future economic shocks.
Topics:businessfinance#economic-research#federal-reserve#finance#interest-rates#monetary-policy#normalization
- A 'New Normal' for Rates? Not So Fast, Says New Fed Research The Wall Street Journal
- Fed's Williams says world of low interest rates still prevails Reuters
- Fed's Williams says there is no evidence the era of very low 'natural' rates of interest has ended MarketWatch
- Fed's Williams Says Pandemic Didn't End Era of Very Low Rates Bloomberg
- Fed's Williams declines to connect monetary policy outlook to neutral rate view Reuters
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