Fed Vice Chair Cites Danger from Low Rates
Federal Reserve Vice Chair Stanley Fischer laid out his concerns about the low interest rate environment, associated dangers and contributing factors. He gave a nod to growing consensus at the Fed that the demographics of aging, technology and a downshift in growth abroad are all factors in the low level of rates. He warned, however, that many of those factors are not in the Fed’s control. He openly expressed concern that keeping rates too low could seed financial instability and limit the Fed’s ability to respond to a recession.