(Reuters) -The prospect of the Federal Reserve once again setting its short-term interest rate target at near zero levels at some point in coming years remains real despite current relatively high levels of short-term borrowing costs, a new paper published jointly between the New York and San Francisco Federal Reserve banks said. The medium- to long-term risk that the central bank’s interest ...

Researchers from the Federal Reserve Banks of New York and San Francisco studied financial markets to divine the probability of the Fed's benchmark interest rate falling back to zero. During the 2008 recession and again in 2020,