Yellen: Fed short on recession-fighting alternatives

Why won’t the Fed raise rate of interest?
The United States Federal Reserve pulled out all the stops for the Great Economic downturn. However when the next economic downturn comes, the Fed’s toolkit is looking rusty. “If there were to be a negative shock to the economy … we don’t have a great deal of space utilizing our traditional attempted and true approaches to react,” Fed Chair Janet Yellen told Congress Tuesday during her biannual statement on the U.S. economy.

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