Yellen: ‘We Might Have to Lower’ Interest Rates Back to Zero
‘Maintaining our sizable holdings of longer-term securities should help maintain accommodative financial conditions and should reduce the risk that we might have to lower the federal funds rate to zero in the event of a future large adverse shock’
RUSH TRANSCRIPT:
"As highlighted in our policy statement, we anticipate continuing this policy until normalization of the level of the federal funds rate is well underway. Maintaining our sizable holdings of longer-term securities should help maintain accommodative financial conditions and should reduce the risk that we might have to lower the federal funds rate to zero in the event of a future large adverse shock."
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