Investing.com - San Francisco Federal Reserve Bank President John Williams said any rate hikes by the Federal Reserve and other central will trend lower than in the past.
"The interest rate that is consistent with the economy growing at trend level and being at full strength is just much, much lower today than it was 25 years ago," he said at the Milken Institute's 2016 Global Conference in Washington, D.C.
Williams, who is not a voter this year on the policy making Federal Open Market Committee this year, said there are "significant downside risks" to the Fed's estimate of the long term equilibrium rate.
"Even after the Fed brings your interest rates back to normal rates - and hopefully the Bank of Japan and ECB and everyone eventually are able to do that - you're looking at a new normal with very low interest rates," he said.