16 Jul 2014
RECAP: Yellen defends current Fed policy
FXStreet (Łódź) - On Wednesday Fed head Janet Yellen repeated her prepared remarks presented on Tuesday before the US Senate Banking Committee, suggesting that the US economic recovery was not complete yet, despite recent improvements, therefore a "high degree" of accommodation remained appropriate.
Yellen pointed to the considerable slack still evident on the US labor market. "Too many Americans remain unemployed," she stressed adding that in the meantime inflation remained below the 2% target.
She signaled that if the employment situation improved at a quicker pace than currently estimated, rate hikes could come earlier than projected by the FOMC at the moment, but still she saw rates remaining at low levels long after the withdrawal of QE.
The Fed chief also expressed concern about the recovery on the US housing market, which had shown little progress this year.
FOMC's growth, unemployment and inflation forecasts are surrounded by "considerable uncertainty," Yellen said.
Yellen pointed to the considerable slack still evident on the US labor market. "Too many Americans remain unemployed," she stressed adding that in the meantime inflation remained below the 2% target.
She signaled that if the employment situation improved at a quicker pace than currently estimated, rate hikes could come earlier than projected by the FOMC at the moment, but still she saw rates remaining at low levels long after the withdrawal of QE.
The Fed chief also expressed concern about the recovery on the US housing market, which had shown little progress this year.
FOMC's growth, unemployment and inflation forecasts are surrounded by "considerable uncertainty," Yellen said.