You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • Axle maker expands Albion footprint, jobs
    A maker of heavy duty and recreational vehicle axles will be adding up to 200 jobs at its Noble County plant early next year. Dexter Axle Co.
  • Samsung vows changes after mobile profit plunges
    SEOUL, South Korea – Samsung Electronics Co. admitted erring in its smartphone strategy and vowed Thursday to overhaul its handset lineup after profit from those devices tumbled last quarter to the lowest in more than three years.
  • Fed's stimulus to end; did it work?
    NEW YORK – The $4 trillion experiment is over.The Federal Reserve announced the end of its economic stimulus, known as quantitative easing, on Wednesday.
Advertisement
Associated Press
Federal Reserve Chair Janet Yellen said Wednesday that she does not see any threats to the economy as interest rates remain low.

Yellen: Interest rates pose no threat

– Federal Reserve Chair Janet Yellen said Wednesday that she doesn’t see a need for the Fed to start raising interest rates to defuse the risk that extremely low rates could destabilize the financial system.

Yellen said she does see “pockets” of increased risk-taking. But she said those threats could be addressed through greater use of regulatory tools. Many of those tools, such as higher capital standards for banks, were put in place after the 2008 financial crisis, which triggered the recession.

In her remarks at a conference sponsored by the International Monetary Fund, Yellen disputed criticism that the Fed had contributed to the 2008 crisis by keeping rates too low earlier in the decade.

Yellen acknowledged that financial stability risks “escalated to a dangerous level in the mid- 2000s” and that policymakers overlooked the vulnerabilities that would make the subsequent decline in home prices so destabilizing.

“Policymakers failed to anticipate that the reversal of the house price bubble would trigger the most significant financial crisis in the United States since the Great Depression,” Yellen said.

She said the government has made progress in closing the regulatory gaps that allowed the financial crisis to erupt.

Advertisement