Reblogged from Reuters – Jason Lange and Howard Schneider
Federal Reserve Chair Janet Yellen on Monday argued for a cautious approach to the pace of interest rises in an unusual exchange with U.S. consumer advocate Ralph Nader.
In a letter to Nader, the Fed chair repeated recent statements that the central bank should only gradually raise interest rates.
"An overly aggressive increase in rates … would at undercut the economic expansion, necessitating a lasting return to low interest rates," Yellen said in the letter.
Nader published an open letter to Yellen on Oct. 30 that asked her to consider the "humble savers" with money in banks and money market accounts who were "frustrated by the Fed’s low rates and melodramatic debate about when to move higher".
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