BOSTON (Reuters) – The United States, with continued low interest rates, is not well-prepared to fight the next recession, Boston Federal Reserve president Eric Rosengren said on Friday, opening a conference discussing how a decade of low interest rates have changed the economy.
Most notably, he said, the Federal Reserve as well as other global central banks do not have the ability to cut rates very far before hitting zero again and having to resort to other measures.
“If a recession were to occur we would not be particularly well positioned and we would be back to zero,” Rosengren said.
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