WASHINGTON, Sept 29 (Reuters) - The Federal Reserve could get benefits from buying assets other than long-term U.S. debt if in a future downturn it could not buy any more government bonds, Fed Chair Janet Yellen said on Thursday.
Referring to asset purchase stimulus programs in a video conference with a minority bankers meeting in Kansas City, Yellen said: “If we found, I think as other countries did, that they could reach the limits in terms of purchasing safe assets like longer-term government bonds, it could be useful to be able to intervene directly in assets where the prices have a more direct link to spending decisions.”
She added that buying equities and corporate bonds could have costs and benefits. (Reporting by Jason Lange and Lindsay Dunsmuir; Editing by Chizu Nomiyama)
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