Yellen in Boston
– Short-term rate cuts alone may be inadequate in the future
– Policy may want to be extra-accommodative in recoveries
– Hard to quantify the costs and benefits of an accommodative strategy
She’s speaking more in a theoretical tone here but it underscores her dovish leanings. You could extrapolate it to mean that she will wait longer but I think that’s going to far. In her view, a hike in December is still very accommodative.
