FED: Yellen: Fed can use "every bullet" in its arsenal

[bobbyw24]

http://www.reuters.com/article/ousivMolt/idUSTRE5600HF20090701

Yellen: Fed can use "every bullet" in its arsenal
Tue Jun 30, 2009 10:17pm EDT

SAN FRANCISCO (Reuters) - The Federal Reserve can use "every bullet" in its arsenal to boost the economy without much fear of kicking up inflation because of the huge output gap, San Francisco Federal Reserve Bank President Janet Yellen said.

Structural adjustments in the U.S. economy may have pushed the natural rate of unemployment to 5 percent of 5.5 percent now from 4.75 percent a few years ago, Yellen said while answering questions after a speech to the Commonwealth Club of California in San Francisco on Tuesday.

With the jobless rate now above 9 percent, though, "I would be thrilled" to see the rate drop to the 6 percent level within the next few years, Yellen said.

(Reporting by Ros Krasny; Editing by Jan Dahinten)

 

[RonPaulCentral]

Even ones they don't have the legal authority to put into motion.

Fed Gov #1: "Is this legal can we PURCHASE these assets?"
Fed Chairman: "Who cares, we will do it anyways. Who do we have to answer to anyhow!? <evil laugh>"
Fed Gov #2: "Hahaha thats right that is how we roll!"

<high fives all around>