[02/12/13] The Federal Reserve may keep interest rates near zero after its bond-buying ends, even after hitting its targets for unemployment or inflation, in order to maintain stimulus, Vice Chairman Janet Yellen signaled.
Yellen’s comments today coincide with a Federal Open Market Committee debate over when to bring its bond purchase program to an end, a shift that may prompt expectations of an interest-rate increase. The FOMC said in December it will hold the main interest rate in a range of zero to 0.25 percent so long as inflation isn’t forecast to rise to more than 2.5 percent in one to two years and unemployment exceeds 6.5 percent.
The speech...
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