Janet Yellen admits Federal Reserve can’t do anything when next recession strikes

“If there were to be a negative shock to the economy…we don’t have a lot of room using our traditional tried and true methods to respond.”

These were words of Federal Reserve Chair Janet Yellen, who delivered her semi-annual testimony on the United States economy to Congress on Tuesday.

Yellen essentially conceded to the fact that the U.S. central bank has no other options should a recession transpire in the next couple of years. The Fed only has three options:

Although once price inflation starts ramping up, the central bank will have no other choice but to raise interest rates similar to the early-1980s under Paul Volcker.

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Comments

  1. sparky spirit says:

    Bye bye cruel world, welcome currency reset!

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