Economists challenge Fed view that low rate times will return

US dollar banknotes are seen in this illustration picture. Forecasters at Deutsche Bank and Goldman Sachs believe the interest rate that balances low inflation and steady economic growth – generally referred to as R-Star – is higher than what many at the Fed think. — Reuters

NEW YORK: Some economists are challenging the view central to some Federal Reserve (Fed) officials that once the current inflation surge and resulting rate tightening have run their course, the world will once again be one of historically low interest rates.

Instead, forecasters at Deutsche Bank and Goldman Sachs believe the interest rate that balances low inflation and steady economic growth – generally referred to as R-Star – is higher than what many at the Fed think.