Low Interest Rates Limit Fed’s Ability to Fight Next Recession, Powell Says

Low Interest Rates Limit Fed’s Ability to Fight Next Recession, Powell Says
Federal Reserve Chairman Jerome Powell speaks during a news conference in Washington on March 21, 2018. Alex Wong/Getty Images
Tom Ozimek
Tom Ozimek
Reporter
|Updated:

Federal Reserve Chairman Jerome Powell said in prepared remarks on Feb. 11 that persistently low interest rates limit central banks’ scope to respond to an economic downturn, adding that using fiscal policy is key for helping to stabilize the economy when it weakens.

“This low-interest-rate environment may limit the ability of central banks to reduce policy interest rates enough to support the economy during a downturn,” Powell said in testimony prepared for a House Financial Services Committee hearing on Feb. 11.

Tom Ozimek
Tom Ozimek
Reporter
Tom Ozimek is a senior reporter for The Epoch Times. He has a broad background in journalism, deposit insurance, marketing and communications, and adult education.
twitter
Related Topics