Yellen Sees Chance Fed Could Cut Rate It Pays Banks on Reserves
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Federal Reserve Vice Chairman Janet Yellen left open the possibility that the central bank could reduce the interest rate it pays on bank reserves as a way of aiding the economy.
“It is something we could consider going forward,” Yellen told the Senate Banking Committee yesterday in a hearing on her nomination to succeed Ben S. Bernanke as Fed chairman. “It certainly is a possibility.”