Fed Chair says US needs to consider ‘more than just a bailout’
The Federal Reserve Chair says the US needs more than just an emergency bailout.
“I’m not sure we’re even there yet,” Janet Yellen told CNBC.
“We are just at the beginning of this process.”
Yellen made the comments after a Wall Street Journal report indicated that Congress is preparing to ask for billions of dollars in additional funding for the US Federal Reserve to help prop up the economy.
“So we are now going through this process of trying to come up with some options, more than we have before,” she said.
Yellen has called for a combination of additional stimulus and fiscal consolidation.
The Federal Reserve has been trying to boost the economy by raising interest rates and expanding its balance sheet.
“There is a lot of money in the economy that is not being used for a wide variety of reasons,” Yellen said.
“And we have to make sure that the economy is healthy and stable.”
As the Fed continues to work to boost growth and inflation, the US economy has been in a slump.
The US unemployment rate stood at 5.4% in August, a record low since December 2008.
“We have a problem, and we are going to have a hard time getting out of it,” Yellens remarks came a day after the Federal Reserve said it would hike its benchmark interest rate by another quarter point, to a record 4.75%.
Yellen also reiterated her opposition to a tax on Wall Street and other big financial firms.
“This tax will be bad for the economy, bad for Wall Street, and bad for America,” Yela told CNBC on Thursday.
In the Senate, Republicans have vowed to vote against any spending bill that includes additional stimulus.