Fed's Fischer: Evidence that natural rate of interest has fallen

Vice-chair of the Federal Reserve Stanley Fischer, speaking to a central banking seminar in New York, notes that there is evidence that the natural rate of interest has fallen, Reuters reports.

Headlines via Reuters

Says "persistent" forces including low productivity growth, damage from financial crisis may leave economy saddled with low growth

Evidence strong that natural rate of interest has fallen, a sign of possible underlying economic weakness

Low natural rate a concern, possibly leaving central banks stuck near the zero bound and reliant on less conventional tools

Evidence does not yet indicate persistent low rates are a risk to financial stability

Says policies to raise growth and interest rates must move beyond monetary policy and include improved infrastructure, schools and regulation