WASHINGTON, July 2 The world's central bankers
will cut interest rates to zero more often if economists are
correct in thinking that many nations have entered a prolonged
period of stagnation, U.S. Federal Reserve Chair Janet Yellen
said on Wednesday.
Asked about the future of monetary policy at a conference
hosted by the International Monetary Fund, Yellen brought up the
possibility that "secular stagnation" would make it more likely
overnight interest rates would again scrape against the
so-called zero lower bound.
"If it is correct that real rates are lower going forward
... I think we will have to worry about these episodes more
often," she said.
(Reporting by Washington newsroom; Editing by James Dalgleish)