Fed's Yellen Says Rates Could Reach Zero in Weak Economy San Francisco Federal Reserve President Janet Yellen said the Fed could lower rates below 1%, and that they could reach as low as zero amid a weak economy. Speaking at an event hosted by the University of California at Berkley and UCLA, Yellen said that loan rates would be substantially higher without the Federal Reserve's aggressive rate cuts. "We've seen very tentative signs of an easing of stress in money markets," Yellen said, pointing to lower LIBOR-OIS and credit default swap spreads. "However, these spreads remain at levels that are...