Economics
Bernanke Says Fed Has the Tools It Needs to Fight Next Recession
- Former Fed chairman says new policy options are effective
- Warns that governments may need to do more with fiscal policy
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Former Federal Reserve Chairman Ben Bernanke delivered what he called “a relatively upbeat” assessment of the U.S. central bank’s ability to fight the next recession.
While the Fed has limited room to cut short-term interest rates because they’re already so low, Bernanke argued that quantitative easing and forward guidance could provide enough extra punch to combat a future economic contraction.