Fed's Yellen: Economy Still Needs 'Extraordinarily Low Rates'

San Francisco Federal Reserve Bank President Janet Yellen said Monday the economy faces a long period of subpar growth, high unemployment and downward inflation pressure, and so it will continue to need "extraordinarily low interest rates."

She did not say when the Fed should start tightening monetary policy, but asserted, "I believe this is not the time to be removing monetary stimulus."

When the time does come to tighten, Yellen advised against outright sales of mortgage-backed securities and other assets from the Fed's portfolio, saying that could disrupt markets and drive up long-term interest rates just as the economy is trying to recover.

Read Full Article from Market News International

- Posted: 2010-02-22 11:26:09

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