October 15, 2019 / 9:45 AM / a month ago

Zero rates and QE still in Fed's playbook for 'ordinary recession' - Bullard

FILE PHOTO: St. Louis Federal Reserve Bank President James Bullard speaks at a public lecture in Singapore October 8, 2018. REUTERS/Edgar Su

LONDON (Reuters) - Zero percent U.S. interest rates, assets purchases and supportive policy promises are still the Federal Reserve’s playbook for an “ordinary recession”, one of its top policymakers said on Tuesday

St. Louis Federal Reserve bank president James Bullard said a paper by former Fed chief Janet Yellen recommending cutting rates to zero, and using forward guidance and quantitative easing was still “state of the art”.

He added a comprehensive framework review of the Fed’s approach to setting monetary policy that has been carried out this year would be an “evolution not a revolution”.

“I would not expect major changes to come out of this.” Bullard, who was speaking at an MMF conference in London, added.

Reporting by Marc Jones; editing by Dhara Ranasinghe

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