Economics
Fed's Williams Says Historically Low Interest Rates Will Persist
- Recessions may be harder to fight as a result, he says
- Low rates could also lead to more financial instability
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Historically low interest rates are here to stay, making it much harder for central banks in wealthy countries to prevent and limit recessions in the future, according San Francisco Federal Reserve Bank President John Williams.
Writing in the bank’s latest economic letter, Williams argued that a decline in the long-run economic growth rate of the U.S. and other rich nations has depressed business investment, and with it, interest rates.