Federal Reserve Research Report Warns: Unclear Economic Outlook May Reappear Zero Interest Rate Risk

By: odaily.com|2025/07/07 17:06:25

Odaily News The latest research report jointly released by the New York Fed and the San Francisco Fed points out that although the current short-term borrowing costs are relatively high, there is still a possibility that the Feds short-term interest rate target will approach zero again in the next few years. The report, co-authored by New York Fed President Williams, shows that the medium- and long-term risk of the Feds interest rate target returning to an ultra-low level is currently at the lower end of the range observed in 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. (Jinshi)

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