NEW YORK – While low interest rates have a negative impact on those depending on savings interest, accommodative monetary policy will eventually set the economy right, Federal Reserve Board Governor Sarah Bloom Raskin said Thursday.
Stating it’s “difficult to predict” how long it will take for the economy to recover fully “given the extraordinary strains of the past few years,” Raskin told a group in Westport, Conn., the Federal Reserve is committed “to act as appropriate to foster maximum employment and price stability,” according to prepared text released by the Fed.
“The highly accommodative monetary policy now in place is intended to provide the support needed to strengthen the economic expansion and, over time, return the economy to sustainable rates of output growth, unemployment, and inflation,” she said. “While the Federal Reserve recognizes that the accommodative policy we have put in place to support the economic recovery may limit the financial returns to saving for a time, ultimately our goal is an economy that is operating close to its potential and is producing jobs, income, and opportunities for investment that will lead to higher returns across a range of assets for savers and investors.”
