Former Federal Reserve Chairman Ben Bernanke said the option of negative interest rates would give the Fed flexibility at a time when its policy toolkit is limited.
The ex-central bank chief issued his latest warning Tuesday on the declining fiscal situation in the U.S.
A quarter-point reduction could leave the central bank open to charges that it is tone-deaf about market and economic data signals.
Low interest rates have been one of the biggest challenges for lenders globally.
There is currently more than $16 trillion in negative-yielding debt around the world as central banks try to ease monetary conditions.
Corporate debt recently passed the $1 trillion mark in a continuing sign of global financial displacement.
The Dow is set to bounce; China labeled a "currency manipulator"; mortgage rates hit November 2016 lows, ex-Fed chiefs call for independent central bank; and Apple invites first customers to its credit card.
The four living former chairs of the Federal Reserve called for the U.S. central bank to remain free to work independently and without fear of political reprisals.
"We look over 15 years, a lot of mistakes were made. You think there would be some more lively discussion," and more dissenters on the Fed, says the longtime stock market bull.
Former Federal Reserve chairman Alan Greenspan joins 'Squawk on the Street' to discuss comments from Fed vice chair Richard Clarida, the state of the U.S. economy and entiltlement concerns.
Former Fed Reserve chairman Alan Greenspan joins 'Squawk on the Street' to discuss the state of the U.S. economy and the Federal Reserve's independence.
Former Federal Reserve Chairman Alan Greenspan joins 'Squawk on the Street' to discuss the state of the U.S. economy.
Former Chair of the Federal Reserve Alan Greenspan joins 'Squawk on the Street' to discuss the state of the U.S. and global economy.
Economic growth won't last as the U.S. labors under the burden of growing entitlement programs, former Fed Chairman Alan Greenspan tells CNBC.
Over more than three decades and four Fed chiefs, there have been a half-dozen sharp market downturns that forced central bankers to pause tightening programs or even to ease policy.
After three decades with top rates below 40 percent, a big hike from today's 37 percent poses risks politically and perhaps economically.
"My friends and I have been coddled long enough by a billionaire-friendly Congress. It's time for our government to get serious about shared sacrifice," Warren Buffett has said.
Raising the marginal tax rate on the richest Americans to 70 percent would be a "terrible idea," former Fed Chairman Alan Greenspan said.
Five-term Fed Chair Alan Greenspan sits down with CNBC's "Squawk on the Street" to discuss the Fed, the economy, taxes and more.
Eli Lilly Chairman & CEO David Ricks sits down with Mad Money host Jim Cramer to discuss Lilly's acquisition of Loxo.