WASHINGTON (AP) -- Federal Reserve Vice Chairman Janet Yellen says the central bank may keep its key short-term interest rate at a record low even after unemployment falls close to a more normal level.
The Fed has said it would hold its benchmark rate near zero as long as unemployment is above 6.5 percent and long-run inflation forecasts are below 2.5 percent. Unemployment is currently 7.9 percent.
In a speech Monday to the AFL-CIO, Yellen said those are "thresholds for possible action, not triggers that will necessarily prompt an immediate increase."
Her comments echoed remarks Fed Chairman Ben Bernanke made in December after the Fed announced it would change its guidance for future rate increases. Bernanke said the Fed might decide to keep stimulating the economy even after unemployment falls below 6.5 percent.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
More from The Motley Fool
3 Fastest-Growing Diabetes Stocks of 2018 -- According to Wall Street
Analysts think these three diabetes stocks could soar more than 50% this year. But are they right?
My 3 Top Stocks for 2018
What do they have in common? They're great businesses in high-growth industries.
Boeing Co.'s Dreamliner Profitability Is Set to Soar
An improving production mix, lower supplier pricing, and a looming increase in output will all drive the 787 Dreamliner program's profitability higher in the next few years.