Yellen Says Legality of Negative Fed Rates in Question
- An investigation of legal issues `still needs to be done'
- The Fed `didn't fully look at the legal issues' in 2010
Yellen: No Known Restriction Preventing Negative Rate
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The Federal Reserve has not yet determined whether it would be able to legally implement negative interest rates in the U.S., Chair Janet Yellen said.
"I would say that remains a question that we still would need to investigate more thoroughly," Yellen said Wednesday in response to questions from the House Financial Services Committee in Washington. "I am not aware of anything that would prevent us from doing it, but I’m saying we have not fully investigated the legal issues -- that still needs to be done."