Fed Chairman Powell: The effective lower bound on interest rates remains a concern

Odaily Planet Daily News: Federal Reserve Chairman Powell said that the effective interest rate lower bound is still a matter of concern, but returning to the effective lower bound is no longer the basic scenario. (Jinshi) Note: The effective interest rate lower bound (ELB) refers to the lowest interest rate level that central banks can set. Normally, the effective interest rate lower bound is generally zero, also known as the zero interest rate lower bound. However, after the global financial crisis, many central banks are challenging this proposition. For example, Japan even set negative interest rates. Since the global financial crisis, major central banks have faced declining neutral interest rates and inflation expectations, and the actual interest rate level has been approaching the effective interest rate lower bound. If the economy declines or recessions, the frequency of interest rates reaching the ELB may be higher.