Yellen says Fed should begin forward guidance now

Janet Yellen
Janet Yellen

The Federal Reserve should signal its willingness to adopt a “lower-for-longer” policy now, creating an automatic mechanism to respond to the next economic slowdown, according to Janet Yellen.

The former Fed chair said such forward guidance would cause long-term rates to fall next time the zero lower bound on interest rates bites.

“If the strategy is understood and credible, it should cause long-term rates to decline when the zero lower bound begins to bind by about as much as would occur in

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: