• Fed's Fischer Concerned About Low Natural Interest Rate

Market news

6 October 2016

Fed's Fischer Concerned About Low Natural Interest Rate

  • Made No Comments on Timing of Future Interest Rate Increases

  • Fiscal Policies More Likely to Promote Faster Growth, Boost Productivity, Than Monetary Policy

  • Increased Saving, Reduced Investment May Have Driven 'Sizeable Decline' in Natural Rate

  • Low Natural Rate May Reflect Deeper Economic Problems, Including Lower Growth Potential

  • Shocks Might Render Conventional Monetary Policy Ineffective

  • Ultralow Rates May Reflect More Than Just Cyclical Forces


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