Speaking at the Economic Club of New York, Fed's Vice Chairman Stanley Fischer stated that is not simple for the Federal Reserve to influence short and long-term interest rates.
Key headlines (via Reuters):
- Multiple factors holding down neutral interest rate including demographics, productivity
- Low rates makes economy more vulnerable to adverse shocks that could lead to recession
- Neutral interest rate could be boosted by rebound in investment, expansionary fiscal policy
- Says no current sign of heightened threat of financial stability from low interest rates