New policies needed for US economy, Fed’s Williams says

Governments and central banks must come up with new economic policies if they are to avoid recessions that are deeper and more difficult to avert, Federal Reserve Bank of San Francisco President John Williams writes in the bank's Economic Letter. "There is simply not enough room for central banks to cut interest rates in response to an economic downturn when both natural rates and inflation are very low," he writes.

Reuters (8/15),  Bloomberg (8/15),  Federal Reserve Bank of San Francisco (8/15)