Yellen Defends Low Interest Rates
Federal Reserve Chairman Janet Yellen says she doesn’t believe that raising interest rates is the best way to let the steam out of financial bubbles. The Fed has held short-term rates near zero since 2008, and is winding down a bond-buying program linked to lowering long-term rates. The goal? To maintain a robust financial system that can survive the bursting bubbles, says Yellen, and not to use higher interest rates to pop them.