Economics
Fed May Adopt Yield-Curve Caps, Ex-Chairs Bernanke, Yellen Say
- Recovery from coronavirus shock may be slow, uneven, they warn
- Yellen sees ‘catastrophe’ if enhanced jobless benefits lapse
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Former Fed Chairs Ben Bernanke and Janet Yellen warned that the U.S. economic recovery from the coronavirus shock could be slow and uneven and said the central bank may opt to cap yields on Treasury securities to help it along.
“It is possible, though not certain,” that the Fed will implement yield-curve control, they wrote on the Brookings Institution website, laying out testimony delivered Friday to the House Select Subcommittee on the Coronavirus Crisis.