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Fed Study Warns: Economic Outlook Uncertain or Zero Interest Rate Risk Could Reoccur
By: theblockbeats.news|2025/07/08 02:01:53
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BlockBeats News, July 8th, a recent research report jointly published by the New York Fed and the San Francisco Fed pointed out that although the current short-term borrowing costs are relatively high, the possibility of the Fed's short-term interest rate target approaching zero again in the next few years still exists.
This report, co-authored by New York Fed President Williams, shows that the medium- to long-term risk of the Fed's interest rate target returning to ultra-low levels is "currently at the low end of the observed range of the past fifteen years." However, the researchers added that due to the recent increase in uncertainty, the possibility of returning to near-zero interest rates in the medium to long term is "still significant." (FXStreet)
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