The Federal Reserve is not out of options should a new recession materialise, but policy-makers may have to consider new tools, Janet Yellen told the Jackson Hole Symposium today (August 26).

Yellen referred to the possibility of buying a wider range of assets than in past quantitative easing programmes, or even changing the policy target, though she stressed the Fed was not "actively considering" such options.

In the long run, the policy rate is likely to rise to around 3%, Yellen said. Compare