Yellen says Fed should begin forward guidance now
Action now could have equivalent impact to negative rates, says former Fed chair
The Federal Reserve should signal its willingness to adopt a “lower-for-longer” policy now, creating an automatic mechanism to respond to the next economic slowdown, according to Janet Yellen.
The former Fed chair said such forward guidance would cause long-term rates to fall next time the zero lower bound on interest rates bites.
“If the strategy is understood and credible, it should cause long-term rates to decline when the zero lower bound begins to bind by about as much as would occur in
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe
You are currently unable to print this content. Please contact info@centralbanking.com to find out more.
You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@centralbanking.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@centralbanking.com