WASHINGTON — Federal Reserve Vice Chair Janet Yellen Tuesday said she is on the side of those who believe the central bank should keep its target interest rate at exceptionally low levels for longer a period than convention dictates due to current economic conditions.

In remarks prepared for delivery at a panel discussion hosted by the International Monetary Fund, Yellen noted that with the fed funds rate close to the zero bound, forward guidance on the future path of interest rates and asset purchases have taken its place as the main tools of monetary policy.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.