Federal reserve to cut $2.3 trillion from its balance sheet
Federal Reserve chair Janet Yellen said Tuesday the central bank would not take action to keep the U.S. economy from slipping back into recession.
She was responding to an op-ed published by the Financial Times, in which she said the central banker’s current economic policies are too loose and that they have caused the economy to collapse.
Yellen said she has heard from economists and other experts that it is difficult to find a solution that will be both economically viable and also sustainable.
She also reiterated that the Fed would not cut the size of its balance sheets or expand its balance-sheet purchases until the economy improves.
She said the Fed is working on a plan to stabilize the economy.
Yeshins comments came as a Reuters/Ipsos poll found Americans’ confidence in the economy is falling, with a majority saying they are dissatisfied with the job they are doing and are worried about their personal finances.
A majority of Americans, 52 percent, said they were satisfied with their jobs, according to a Reuters poll conducted in July.
The Fed has been working to rein in its balance of payments, which have grown at a pace of more than 7 percent a year since 2014.
The U.N. body said Tuesday that the U,S.
is on course to fall back into its longest recession since the 1930s and to have the fourth-largest deficit in the world by 2020.