Bloomberg News (11/23, Condon) reports that in response to a letter “from a ‘group of humble savers’ that included consumer advocate Ralph Nader” calling for higher interest rates, Federal Reserve Chairman Janet Yellen “said Americans would have been worse off had the central bank not kept rates near zero since 2008.”
In addition, Bloomberg says, Yellen “repeated that she expects to tighten policy ‘gradually’ after liftoff.”
In her letter, released Monday, Yellen warned that “an overly aggressive increase in rates would at most benefit savers only temporarily.”
She wrote that if the Fed hadn’t acted forcefully in the seven years since the economic crisis, “Many of these savers undoubtedly would have lost their jobs or pensions (or faced increased burdens from supporting unemployed children and grandchildren).”
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