Federal Reserve Research Report Warns: Uncertain Economic Outlook May Lead to Zero Interest Rates Again

The latest research report jointly released by the Federal Reserve Bank of New York and the Federal Reserve Bank of San Francisco points out that although current short-term borrowing costs are at a relatively high level, there is still a possibility that the Federal Reserve's short-term interest rate target will approach zero again in the coming years. The report, co-authored by New York Fed President Williams, shows that the medium- to long-term risk of the Fed's interest rate target returning to ultra-low levels is "currently at the low end of the observed range over the past fifteen years." However, the researchers added that due to the recent increase in uncertainty, the possibility of returning to near-zero interest rates in the medium to long term "remains significant." (Golden Ten) [Odaily Planet Daily]