Fair
25°FFairFull Forecast

Yellen reiterates support for bond buying

Published: Tuesday, Nov. 19, 2013 4:55 p.m. CST

WASHINGTON – Janet Yellen says a “strong majority” of Federal Reserve officials think the Fed’s low-interest-rate policies have supported a still-recovering U.S. economy.

Responding to questions from members of the Senate Banking Committee, Yellen said the U.S. economy would likely be weaker if the central bank had not acted aggressively.

Yellen’s responses were released Tuesday, one day before the committee is expected to vote to back her nomination to succeed Ben Bernanke as Fed chairman.

In letters to the committee, Yellen defended the Fed’s monthly bond purchases, which have been intended to keep long-term rates down to encourage borrowing and spending. Critics have charged that the bond purchases haven’t helped the economy and have raised the risks of high inflation or asset bubbles.

Get breaking and town-specific news sent to your phone. Sign up for text alerts from the Northwest Herald.

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Reader Poll

If you had only one day to live, what would you do with it?
Learn to play the piano
Take up ice sculpting
Learn to speak French
Win over the love of a small town
Other