Reuters has an interesting article about the Federal Reserve and Chair Yellen’s concern about being stuck at historic low rates. Yellen discussed the U.S. Neutral Rate (the rate at which monetary policy is neither spurring nor restraining growth) could be stuck at a historic low.
Yellen commented that “there are long-lasting, more persistent factors that may be holding down the longer-run level of neutral rates. It could stay low for a prolonged time….”
