Arab Today, arab today strong dollar makes fed cautious
Last Updated : GMT 05:04:11
Arab Today, arab today
Arab Today, arab today

Fed Chair Janet Yellen:

Strong dollar makes Fed cautious

Arab Today, arab today

Arab Today, arab today Strong dollar makes Fed cautious

The Federal Reserve is widely expected to begin raising rates after 9 years
Washington - Arab Today

The stronger dollar and the divergence in monetary policies by major central banks has made the Federal Reserve "cautious" on raising interest rates, Fed Chair Janet Yellen said Thursday.

Hours after the European Central Bank announced a rate cut and further policy easing, Yellen acknowledged that the Fed's opposite track has sent the dollar higher, hitting US exports.

"When we have divergent monetary policies globally, it often means that there will be exchange rate movements that accompany that. We have seen that over the last year and a half," Yellen told a congressional hearing.

"The combination of the weak growth abroad, plus the movement in the dollar, has been a factor that has been depressing net exports. And that's been a subtraction from growth."

Noting that the trend is likely to continue, Yellen added, "that makes us much more cautious in terms of raising rates."

But she also argued that US economic strength is rooted in domestic consumption and investment, which continues to grow.

"For very good fundamental reasons, there's greater strength there. So when we put it all together, we're still seeing an overall picture of above-trend growth," she said.

Despite the European Central Bank's interest rate cut earlier Thursday, the dollar actually strengthened by a sharp 2.5 percent against the euro, because, as Yellen noted, markets had expected stronger action by the ECB to stimulate eurozone growth.

The Fed meanwhile is widely expected to begin raising rates after nine years in its December 15-16 policy meeting.
Source: AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today strong dollar makes fed cautious Arab Today, arab today strong dollar makes fed cautious

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today strong dollar makes fed cautious Arab Today, arab today strong dollar makes fed cautious

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today How to do your own Ramadan corner?

GMT 15:53 2017 Saturday ,27 May

How to do your own Ramadan corner?
View News in Arabic - Business: حوارات وتقارير
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday