WASHINGTON – The Federal Reserve could be forced to keep interest rates low or even reduce them to 0% if the rate of inflation continues to fall even if the economy picks up in the second half of the year as some experts have predicted, said Federal Reserve Gov. Ben Bernanke. In a speech to the Economics Roundtable at the University of California-San Diego, Bernanke forecasted a lack of demand and slow job creation will continue and result in lower inflation or even deflation, a widespread fall in prices. He said keeping rates at current lows "for an extended period" might be sufficient to support the economy, but he left open the possibility the Fed could use less traditional methods.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
