Federal Reserve's Short-Term Rate Target May Approach Zero Again, Study Finds

According to Odaily, a joint report by the New York Federal Reserve and the San Francisco Federal Reserve indicates that despite current high short-term borrowing costs, there remains a possibility that the Federal Reserve's short-term rate target could approach zero in the coming years. The report, co-authored by New York Fed President Williams, reveals that the risk of the Fed's rate target returning to ultra-low levels is currently at the lower end of the observation range over the past fifteen years. However, researchers note that due to rising uncertainties, the likelihood of returning to near-zero rates in the medium to long term remains significant.