Yellen Doesn’t Rule Out Negative Rates in Letter to Congressman
- Fed chair emphasizes high bar for resorting to negative rates
- Policy makers would need to consider ‘wide range of issues’
Nassim Taleb: Yellen Has the Worst Job in the U.S.
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Federal Reserve Chair Janet Yellen didn’t rule out using negative rates in a future crisis but emphasized that they would be adopted as a last resort.
In written responses Thursday to questions from Representative Brad Sherman, Yellen said that “while I would not completely rule out the use of negative interest rates in some future very adverse scenario, policy makers would need to consider a wide range of issues before employing this tool in the United States, including the potential for unintended consequences.”