Arab Today, arab today yellen confident in us growth but stresses ‘gradual’ rate hikes
Last Updated : GMT 06:16:50
Arab Today, arab today
Arab Today, arab today

Yellen confident in US growth but stresses ‘gradual’ rate hikes

Arab Today, arab today

Arab Today, arab today Yellen confident in US growth but stresses ‘gradual’ rate hikes

Federal Reserve Chairwoman Janet Yellen
New York - AFP

Federal Reserve Chair Janet Yellen expressed confidence in US economic growth Tuesday but stuck to a dovish stance on monetary policy, saying the Fed still had to keep its eye on international economic and financial frailty.

With markets on edge over when the Fed will next raise interest rates, which would increase the cost of money for borrowers worldwide, Yellen signaled clearly that was not likely to come before June and that, when the US central bank  does tighten policy, it will be slow and gradual.

“The US economy has proven remarkably resilient,” she told the Economic Club of New York,  in her first public remarks since the Fed took a surprisingly dovish stance on monetary policy in its March meeting.

Job creation remains strong, and other signs of growth firm, even as US manufacturing industry has been hit by the strong dollar and the sharp contraction in the oil and gas industry, she said.

But even if the US economy continues to grow at a moderate pace, the Fed has to pay heed to ”broader concerns about global financial developments,” including oil prices and the overall pace of growth, as it weighs tightening monetary policy.

Yellen also rejected arguments, including from some Fed officials, that inflation has increased to the point that the policy-setting Federal Open Market Committee (FOMC) needs to raise rates sooner rather than later.

She was still not convinced that the signs of a permanent uptick in consumer prices were already evident.

“It is too early to tell if this recent faster pace will prove durable,” she said.

Her remarks sent stocks higher and the dollar tumbling after markets had expected a slightly more hawkish stance. Since the March FOMC meeting, several other officials have expressed stronger views on inflation picking up and the likelihood of a rate increase by mid-year.

Reversing earlier losses, the S&P 500 added 0.8 percent in afternoon trade, while the dollar lost about 0.8 percent at $1.1289 per euro. The dollar also fell against the yen and the British pound.

“On balance, (Yellen’s) comments do not sound consistent with a looming rate hike in April and leave considerable doubt about whether rates will rise in June,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange.

Broadly speaking, Yellen said the Fed is holding to its forecasts for moderate US growth and inflation heading to the Fed’s 2.0 percent goal over the medium term, the same view it held in December when the FOMC decided to raise the rock-bottom federal funds rate for the first time in more than nine years.

At the time, the FOMC projected another four quarter-point rate increases over this year, taking the fed funds benchmark to 1.25-1.50 percent.

But that was scaled back in March to two increases, spurring debate among analysts over whether the Fed was missing the ball or, on the other hand, seeing more dangers to growth than it was letting on.

“The baseline economic outlook that the committee saw both in December and March looks quite similar,” Yellen explained.

“I would say the major thing that’s changed between December and March that affects the baseline outlook is a slightly weaker projected pace of global growth.”

 

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 yellen confident in us growth but stresses ‘gradual’ rate hikes Arab Today, arab today yellen confident in us growth but stresses ‘gradual’ rate hikes

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Rebel supporters flood Yemen streets

GMT 06:39 2017 Monday ,27 March

Rebel supporters flood Yemen streets
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today Trump to roll back Obama clean power plan

GMT 11:10 2017 Monday ,27 March

Trump to roll back Obama clean power plan
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Nermein Al Fekki films “Foxes in the Valley”

GMT 09:58 2017 Saturday ,25 March

Nermein Al Fekki films “Foxes in the Valley”
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 20:03 2017 Saturday ,25 March

Health expert warns from dust sensitivity

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 06:04 2017 Tuesday ,28 March

Saudi Arabia ranks 3rd globally for smartphone use

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" 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