Fed’s Bullard explains the problem with keeping rates at zero forever

St. Louis Fed president James Bullard stopped by Business Insider to talk about the Fed’s decision not to raise rates in September. Bullard does not have a vote on the FOMC this year but argued against the decision to keep rates near zero.

The most notable part of Janet Yellen’s news conference was when she responded to a question by saying she couldn’t rule out keeping rates near zero forever. We asked Bullard why having a zero interest rate policy forever was a bad idea. He made a strong argument by pointing to Japan.
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First published here: http://feedproxy.google.com/~r/businessinsider/~3/iWVGtbKcpc4/james-bullard-fed-zero-interest-rates-forever-japan-growth-2015-9


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