Ex-Fed’s Yellen: Inclined for a 25 bps rate cut this week

Speaking at an event, opening the Aspen Economic Strategy Group meeting in Aspen, Colorado on Monday, the former Federal Reserve (Fed) President Janet Yellen endorsed a 25bps Fed rate cut this week.

Key Quotes

I would be inclined to cut a bit.  I wouldn't see this as the beginning - unless things change - of a major easing cycle. But I do think it's appropriate.

Think inflation is too low.

Global economy was weakening because of trade conflicts that have created uncertainty for business investment.

US interest rate increases have contributed to slower growth abroad.

The US is not an island. When the US tightens policy, it has repercussions in many parts of the world.

The Fed's tightenings appeared to be weakening financial markets and the prospects for growth globally.