Former Federal Reserve Chairman Ben Bernanke cited the benefits of at least keeping the option alive to take short-term rates below zero. Doing so, he said, would give the Fed flexibility at a time when its policy toolkit is limited.
"Categorically ruling out negative rates is probably unwise, as future situations in which the extra policy space provided by negative rates could be useful are certainly possible," Bernanke said in a companion paper to his speech.
"Central bank purchases of longer-term financial assets ... have proved an effective tool for easing financial conditions and providing economic stimulus when short rates are at their lower bound," he said. "The effectiveness of QE does not depend on its being deployed during a period of market turbulence."
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Dancing On Ice star Ben Hanlin suffers painful rib injury just days before TV debut on new seriesDancing On Ice star Ben Hanlin suffered a painful injury just days ahead of his debut on the 2020 series alongside Holly Willoughby
Lire la suite »
Bernanke: Fed has ample clout to fight downturn if toolkit used properlyThe U.S. Federal Reserve still has enough clout to fight a future downturn, but ...
Lire la suite »
Fed's Williams says it is important to keep 2% inflation target amid low rates: WSJNew York Fed President John Williams said on Sunday that it was important for th...
Lire la suite »
Fed faces new trade-offs, hunts for new model, in low-rate worldAn unprecedented combination of low U.S. unemployment, weak inflation and low in...
Lire la suite »
Fed’s Williams Stresses Need to Stick to 2% Inflation TargetFederal Reserve Bank of New York President John Williams said Sunday that low global interest rates are here to stay, which should lead central bankers to renew their commitment to inflation goals.
Lire la suite »
My student loans ballooned by $46,000, but I'm not sorry - Business InsiderAbout 20 years post-undergrad, it's clear to me that my loans grew from a combination of my poor financial decision-making and a high interest rate
Lire la suite »