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2026-05-28 17:05:47
[Chicago Fed Warns of Risks from Low Interest Rates; Japan's Negative Interest Rates Serve as a Negative Example; Middle East Inflationary Pressures Force Policy Shift] ⑴ Chicago Fed President Austan Goolsby warned that excessively low interest rates pose risks against the backdrop of rising inflation triggered by Middle East conflicts. He cited Japan as an example, pointing out that even now, Japan's real interest rates remain significantly negative, an anomaly both historically and globally. ⑵ Goolsby stated that various anomalies can occur when interest rates hover near the zero lower bound. He also noted that in an environment of rising inflation, central banks always face the possibility of lagging behind the curve in controlling inflation. ⑶ The recent rapid rise in Japanese government bond yields is mainly due to market concerns that rising energy costs will accelerate potential inflation. Goolsby's remarks suggest that inflationary pressures driven by Middle East geopolitical conflicts may force major central banks to re-examine the sustainability of low interest rate policies, posing a qualitative risk to global monetary policy expectations.
