The key interest rate the Federal Reserve System (Fed) is likely to remain close to zero during the "long period of time," said Vice Chairman of the Board of Governors of the Fed, Donald Kohn.
According to the publication of MarketWatch, the official believes that the measures the Central Bank of United States are appropriate in a crisis and can lead to significant economic growth and increase tax revenues.
D. Cohn actively defends Fed policy, stating that by custom controls measures helped prevent a deepening crisis.
"In my opinion, this alternative policy was necessary to prevent a much worse developments in the economy, our traditional measures meet the purposes and principles of monetary policy", - said D. Cohn.
He believes that "the depth and the inertia of the economic downturn" restrict the ability of the Fed on the use of traditional instruments of monetary policy - interest rates, the Central Bank. The base interest rate the U.S. central bank is in the target range of 0% to 0.25%.
"Target rate on federal loans will remain for some time close to zero. But the result is a more effective fiscal incentives than under normal conditions", - said D. Cohn.
According to the publication of MarketWatch, the official believes that the measures the Central Bank of United States are appropriate in a crisis and can lead to significant economic growth and increase tax revenues.
D. Cohn actively defends Fed policy, stating that by custom controls measures helped prevent a deepening crisis.
"In my opinion, this alternative policy was necessary to prevent a much worse developments in the economy, our traditional measures meet the purposes and principles of monetary policy", - said D. Cohn.
He believes that "the depth and the inertia of the economic downturn" restrict the ability of the Fed on the use of traditional instruments of monetary policy - interest rates, the Central Bank. The base interest rate the U.S. central bank is in the target range of 0% to 0.25%.
"Target rate on federal loans will remain for some time close to zero. But the result is a more effective fiscal incentives than under normal conditions", - said D. Cohn.
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