Arab Today, arab today us economy faces considerable uncertainty
Last Updated : GMT 20:45:53
Arab Today, arab today
Arab Today, arab today

Federal Reserve Chair Janet Yellen:

US economy faces 'considerable uncertainty'

Arab Today, arab today

Arab Today, arab today US economy faces 'considerable uncertainty'

Federal Reserve Chair Janet Yellen
Washington - Arab Today

Federal Reserve Chair Janet Yellen warned Tuesday that the US economy faces "considerable uncertainty" from slower domestic activity and from a possible British vote to break with the European Union.

Pointing to dragging hiring and business investment recently, and to the risk that a pro-Brexit vote will send shock waves through global markets, Yellen signaled that the Fed has become less optimistic about US growth over the short term and will proceed with great caution on plans to raise interest rates.

She (Munich: SOQ.MU - news) said in testimony to the Senate Banking Committee that US growth has picked up noticeably in the second quarter from the sluggish pace at the beginning of the year. Nevertheless, she said economic growth has been uneven and clear downside risks remain a threat.

"Considerable uncertainty about the economic outlook remains," she said. "The latest readings on the labor market and the weak pace of investment illustrate one downside risk -- that domestic demand might falter."

Added to that, Yellen said, are the challenges of slower growth and reform hurdles in China, and the referendum in Britain on Thursday on pulling out of the European Union, which could radically alter Europe's economic framework.

"A UK vote to exit the European Union could have significant economic repercussions," she told the panel. It (Other OTC: ITGL - news) could rupture what she called "a very important relationship" between Britain and the European continent, and could have an impact on the progress of European integration .

"It would usher in a period of uncertainty that is very hard to predict," she added, warning of volatility in global markets.

Yellen was speaking days after the Fed's policy body, the Federal Open Market Committee, turned more dovish in its view of the economy as it again kept its benchmark interest rate locked at an ultra low level on Wednesday.

While Yellen reiterated the FOMC's expectations that it could increase the federal funds rate twice before the end of the year, ending 2016 close to 1.0 percent, she also highlighted risks to the longer term.

She noted that a number of prominent economists have argued that slow productivity growth in the United States will continue in the future, dampening overall growth. "We cannot rule out" that possibility, she said.

And she said that as long as other domestic weaknesses persist, like slow household formation and business investment, and if global risks remain significant, then the Fed needs to hold interest rates ultra-low "to keep the economy operating near its potential."

Yellen was speaking in semi-annual testimony to Congress on the state of the US economy and Federal Reserve monetary policy.

- Recession unlikely -

Despite her concerns over the short-term outlook, Yellen reiterated that she and the FOMC were fairly confident in the medium-term outlook that growth will remain moderate, that companies will continue to hire workers at a steady pace and that inflation, which has been overly weak, will turn upward.

Even (Taiwan OTC: 6436.TWO - news) if Britain does move to break with the European Union, she rejected predictions that the US faces a possible recession this year. "I don't think that's the most likely case, but we just don't know what will happen" after the Brexit vote, she said. "I remain quite optimistic."

US markets showed little reaction to the Fed chair's testimony. Near midday, Wall Street was trading close to break-even for the day, with the S&P 500 up 0.1 percent. The dollar edged up slightly to $1.1256 against the euro and 104.56 yen.

Source: AFP

arabstoday
arabstoday

GMT 14:40 2017 Monday ,25 September

OPEC to discuss extending cuts, quotas

GMT 05:19 2017 Thursday ,07 September

Oil price to stay at $50-$55 a barrel

GMT 02:17 2017 Monday ,04 September

UK will not be pressured by EU timetable: Davis

GMT 20:54 2017 Sunday ,03 September

BRICS turned into pushing power

GMT 14:42 2017 Tuesday ,29 August

Qabil: challenges by Industrial sector

GMT 20:39 2017 Saturday ,26 August

Mayor calls for Petrobras privatization

GMT 14:45 2017 Thursday ,17 August

MP: government ignores citizen
Arab Today, arab today
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 us economy faces considerable uncertainty Arab Today, arab today us economy faces considerable uncertainty

 



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 us economy faces considerable uncertainty Arab Today, arab today us economy faces considerable uncertainty

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Sheraton Grand Hotel reveals its deals

GMT 12:20 2017 Monday ,25 September

Sheraton Grand Hotel reveals its deals
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Iraq Kurds in historic independence vote

GMT 15:20 2017 Monday ,25 September

Iraq Kurds in historic independence vote
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Conditions growing dire    

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Chevrolet's first 9-speed auto debuts

GMT 18:58 2017 Monday ,25 September

Chevrolet's first 9-speed auto debuts
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:02 2017 Sunday ,24 September

Harry visits mental health hospital

GMT 11:11 2017 Sunday ,24 September

The dark side of new tourism hope

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
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