In her first meeting as Federal Reserve chair next week, Janet Yellen will put her stamp on policy by reaching for a favorite tool of central bankers: words intended to guide markets in the direction policy makers want.
Federal Reserve economists warned in December 2008 that five years could pass before growth revived enough to warrant raising interest rates from near zero, as the magnitude of the economic meltdown dawned on Fed officials.
Former Federal Reserve Chairman Ben S. Bernanke said the U.S. economy should continue to recover, and he expects the central bank will continue to provide support to growth until the labor market is fully healed.
Former Federal Reserve Chairman Ben S. Bernanke said the U.S. economy would be weaker had the Fed not pushed ahead with bond purchases that have expanded the central bank’s balance sheet to a record $4.16 trillion.
Former Federal Reserve Chairman Ben S. Bernanke said the central bank should have explained more effectively that bailouts during the financial crisis were aimed at helping people outside the finance industry.
Federal Reserve Governor Jeremy Stein endorsed a warning by economists that raising the main interest rate may cause a financial-market convulsion similar to the “tantrum” that occurred last year after the Fed said it was considering trimming its bond purchase program.