Chairman Ben S. Bernanke At the Annual Monetary/Macroeconomics Conference: The Past and Future of Monetary Policy, sponsored by Federal Reserve Bank of San Francisco, San Francisco, California
March 1, 2013 – Long-Term Interest Rates
“In my comments, I will delve more deeply into the reasons why these long-term interest rates have fallen so low. This examination may be useful both for understanding the current stance of policy and also for thinking about how rates may evolve. In short, we expect that as the economy recovers, long-term rates will rise over time to more normal levels. A return to more normal conditions in financial markets would, of course, be most welcome. Many commentators have noted, however, that both an extended period of low rates and the transition back toward normal levels may pose risks to financial stability. In the final portion of my remarks, I will discuss some aspects of how the Federal Reserve is approaching these risks.”
