Federal Reserve Research Warns: Uncertain Economic Outlook May Reintroduce Zero Interest Rate Risk

ChainCatcher news, according to the latest research report jointly released by the New York Fed and the San Francisco Fed, although current short-term borrowing costs are relatively high, there remains a possibility that the Federal Reserve's short-term interest rate target could approach zero again in the coming years.

The report, co-authored by New York Fed President Williams, indicates that the medium to long-term risk of the Federal Reserve's interest rate target returning to ultra-low levels "is currently at the lower end of the range observed over the past fifteen years." However, the researchers added that due to the recent rise in uncertainty, the possibility of returning to near-zero interest rates in the medium to long term "remains significant."