A hearing device, e.g. a hearing aid, comprising • an input transducer for converting an input sound to an electric input signal representing sound, • an output transducer for converting a processed electric output signal to an output sound or mechanical vibration, • a signal processing unit operationally coupled to the input and output transducers and configured to apply a forward gain to the electric input signal or a signal originating therefrom, and • a frequency shifting unit for de-correlating the processed electric output signal and the electric input signal, the input transducer, the signal processing unit, the frequency shifting unit, and the output transducer forming part of a forward path of the hearing device, the hearing device further comprising • a feedback cancellation system for reducing a risk of howl due to acoustic or mechanical feedback of an external feedback path from the output transducer to the input transducer, the feedback cancellation system comprising ∘ a feedback estimation unit comprising ▪ a first adaptive filter (Algorithm, Filter) for providing an estimate of said external feedback path, and ∘ a combination unit (+) located in the forward path, wherein the feedback estimation unit provides a resulting feedback estimate signal (fbp), which is combined with the electric input signal or a signal derived therefrom in the combination unit (+) to provide a resulting feedback corrected signal (err), CHARACTERIZED IN THAT ∘ the feedback estimation unit further comprises ∘ a correction unit (CORU) for compensating said estimate of the feedback path by diminishing a residual bias in said resulting estimate (fbp) of the feedback path introduced by the frequency shifting unit,wherein the residual bias is approximated by the gradient g(n) = e(n)e f (n-d) when minimizing E[e 2 (n)] in the adaptive estimation of the true feedback path h(n), where E[·] is the statistical expectation operator, e(n) is the (feedback corrected) error signal, e f (n) is the modulated error signal, when modulated by a frequency shift Af=f, and parameter d represents a delay of d samples, and n is a time index. • an input transducer for converting an input sound to an electric input signal representing sound, • an output transducer for converting a processed electric output signal to an output sound or mechanical vibration, • a signal processing unit operationally coupled to the input and output transducers and configured to apply a forward gain to the electric input signal or a signal originating therefrom, and • a frequency shifting unit for de-correlating the processed electric output signal and the electric input signal, • a feedback cancellation system for reducing a risk of howl due to acoustic or mechanical feedback of an external feedback path from the output transducer to the input transducer, the feedback cancellation system comprising ∘ a feedback estimation unit comprising ▪ a first adaptive filter (Algorithm, Filter) for providing an estimate of said external feedback path, and ∘ a combination unit (+) located in the forward path, wherein the feedback estimation unit provides a resulting feedback estimate signal (fbp), which is combined with the electric input signal or a signal derived therefrom in the combination unit (+) to provide a resulting feedback corrected signal (err), CHARACTERIZED IN THAT ∘ a feedback estimation unit comprising ▪ a first adaptive filter (Algorithm, Filter) for providing an estimate of said external feedback path, and ∘ a combination unit (+) located in the forward path, wherein the feedback estimation unit provides a resulting feedback estimate signal (fbp), which is combined with the electric input signal or a signal derived therefrom in the combination unit (+) to provide a resulting feedback corrected signal (err), CHARACTERIZED IN THAT