Fed’s Williams Says Pandemic Didn’t End Era of Very Low Rates

Federal Reserve Bank of New York President John Williams said there is no evidence that the Covid-19 pandemic has ended the era of very low interest rates experienced before the crisis, although growth may be slower in the long run.

The New York Fed chief also said the natural rate, known as r-star — defined as the real short-term interest rate expected to prevail when an economy is at full strength and inflation is stable — has returned to levels seen in 2019.