Central Banks
Fed’s Williams Says Estimates Show ‘Low R-Star Regime Endures’
- Policy decisions should not rely on r-star estimates, he says
- Productivity impact from artificial intelligence not yet known
This article is for subscribers only.
Federal Reserve Bank of New York President John Williams, who has deeply researched the natural rate of interest known as r-star, pushed back against recent commentary that it has risen since the pandemic.
In remarks prepared for a panel discussion at the European Central Bank forum in Sintra, Portugal on Wednesday, Williams cited recent estimates that place r-star in the US and euro zone near to where they were before the outbreak of Covid-19.