(Bloomberg) — Former Federal Reserve Chairman Ben Bernanke delivered what he called “a relatively upbeat” assessment of the U.S. central bank’s ability to fight the next recession.While the Fed has limited room to cut short-term interest rates because they’re already so low, Bernanke argued that quantitative easing and forward guidance could provide enough extra punch to combat a future economic contraction.“The new policy tools are effective,” Bernanke said in a blog post summarizing his address to the American Economic Association’s annual meeting on Saturday. “Quantitative easing and forward guidance can provide the equivalent of about 3 additional percentage points of …read more
Source:: Yahoo Finance
