SAN FRANCISCO — San Francisco Federal Reserve Bank president Janet Yellen Sunday warned that without “substantial” fiscal stimulus to supplement monetary stimulus, the U.S. economy could face an “extended period of stagnation.”

Yellen, echoing what the policymaking Federal Open Market Committee said Dec. 16, said it is appropriate for the federal funds rate to be kept “exceptionally low ... for some time.” But she said that is not sufficient and that a large and diversified fiscal package is also going to be needed.

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