By Ann Saphir
(Reuters) – As the financial crisis deepened in 2008, Janet Yellen argued at least twice for a more aggressive cut to interest rates than most of her colleagues at the Federal Reserve, internal documents unsealed on Friday showed.
For Yellen’s critics, who worry the new Fed chair is a policy “dove” partial to overly easy monetary policy, that revelation will add grist to their mill.
Feb 21 (Reuters) – Federal Reserve policymakers, in an
emotional meeting on one of the darkest days of the 2008
financial crisis, were worried the failure of Lehman Brothers a
day earlier would wreak havoc on a teetering financial system
but feared cutting already low interest rates might prove an
Transcripts of the U.S. central bank’s meeting on Sept. 16
of that year, released on Friday, showed then Fed Chairman Ben
Bernanke flatly telling his colleagues he was philosophically
torn about the collapse of the investment bank.
LOUIS (Reuters) – Three Federal Reserve officials on Wednesday said they believe the U.S. economy is gaining traction despite a recent slowdown from cold weather, allowing the central bank to stick to its plan to wind down its massive bond-buying stimulus this year.
The comments, from the heads of the Federal Reserve banks of St. Louis, San Francisco and Atlanta, freshen the message in the minutes of the Fed’s most recent policymaking meeting, also released Wednesday, which showed many thought only a big change in outlook could scupper further measured reductions in purchases.