Yellen Says US Economy Could Need ‘High-Pressure’ Policies To Avert Crisis

Janet Yellen said at a conference of policymakers in Boston that the Fed may need to trigger a “high-pressure economy” to undue damages from the 2008 crisis before they become permanent features of the US economy.

While she did not directly address interest rates or particular policies, Yellen communicated a deepening concern that the US economy may need aggressive steps taken to safeguard it, Reuters reports. That could mean temporarily pushing robust aggregate demand while tightening the already tight labor market.

While Yellen’s comments were posed as questions that need more research, one idea she mentioned was pursuing policies that continue to lower unemployment while boosting consumption, even at the risk of triggering high inflation. [Reuters]

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Deutsche Finance Offices Raided In Connection With BVK's U.S. Real Estate Investments

GSA Taps Cushman & Wakefield Veteran As Federal Real Estate Head

Building Management Systems Weren't Built For AI Data Centers. This Optimizer Could Be The Solution

Democrats Win Congress As America's Data Center Backlash Hits The Ballot Box

U.S. Hotel RevPAR Surges 7% In Q3, But Expect Easing From Here

Stock Sell-Off, Bond Market Jitters Signal Financing Trouble For AI Data Centers

Starwood Launches Residential Land JV Targeting $1B In Annual Originations

RealPage Antitrust Case Ends With Nearly $360M In Settlements For Renters

ZOM Living Entity Files For Bankruptcy To Fund Fight To Overturn $323M Judgment

How Colliers Engineering Helped A Struggling Dam Move To The Head Of The Class

Real Estate's Bottom Rung Is Getting Harder To Reach — And Now It Wants AI Skills

OpenAI Plans Data Center Rebrand To Make Projects Palatable To Voters