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3 Federal Reserve voting members say they would support more stimulus if economy weakens
Three voting members of the Federal Reserve's policy committee are signaling they would support further action by the Fed if the economy weakens.
Janet Yellen, the vice chairman of the Fed, Dennis Lockhart, president of the Fed's Atlanta regional bank, and John Williams, president of the Fed's San Francisco regional bank, all said in speeches Wednesday that they would back more stimulus if conditions worsened.
Yellen, an ally of Fed Chairman Ben Bernanke, said the Fed could pursue more bond buying to lower long-term interest rates and encourage borrowing and lending. Or it could extend its plan to keep short-term rates near zero beyond late 2014.
But she acknowledged both options would have limited effect on the economy.
Bernanke will testify Thursday and could provide further guidance on Fed policymaking.