Yellen puts brakes on rate rise talk

US Fed chair Janet Yellen has said the 2008 financial crisis would not have been prevented had interest rates been higher, adding that fresh concerns about financial stability now should not prompt a rate increase.

Speaking at the International Monetary Fund yesterday, Yellen dropped a strong hint that rate rises may be some way off in the US, stating there are better ways to control any financial excess seen in markets. According to Bloomberg, Yellen said supervision should be "the main line of defense" against turmoil. "Monetary policy faces significant limitations as a tool to promote financial stability," she said. "Its effects on financial vulnerabilities, such as excessive leverage and maturity transformation, are not well understood and are less direct than a regulatory or supervisory ...