Nov. 14 - Federal Reserve Vice Chairman Janet Yellen indicates a willingness to keep interest rates near zero until 2016. Conway G. Gittens reports.
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Today the power player is Federal Reserve Vice Chair Janet Yellen….
for going out on a limb, saying U.S. interest rates may need to stay near zero until early 2016.
It would be a half year longer than Wall Street expects and at the risk of a bit more inflation, but could lower the stubbornly high 7.9 percent jobless rate in the U.S.
Yellen also endorsed adopting numerical thresholds for unemployment and inflation to guide expectations on when rates would go back up. For example, she said she was strongly supportive of her colleague on the Fed's board who suggested holding rates steady until unemployment is under 7.0 percent, provided inflation remains below 3.0 percent.
Janet Yellen, the U.S. central bank's No. 2, is viewed as a front-runner to succeed Fed Chairman Ben Bernanke; his term expires in January 2014.
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