WASHINGTON Nov 4 The Federal Reserve would
consider pushing interest rates below zero if the U.S. economy
took a serious turn for the worse, Fed Chair Janet Yellen said
"Potentially anything - including negative interest rates -
would be on the table. But we would have to study carefully how
they would work here in the U.S. context," Yellen told a House
of Representatives committee.
This would happen if the economy were to "deteriorate in a
significant way," she said, adding that she believed negative
rates "would have some at least modest favorable effect on
banks' incentives to lend."
(Reporting by Jason Lange; Editing by James Dalgleish)