Arab Today, arab today fed\s new chief yellen no change to policy
Last Updated : GMT 21:34:00
Arab Today, arab today
Arab Today, arab today

Fed\'s new chief Yellen: No change to policy

Arab Today, arab today

Arab Today, arab today Fed\'s new chief Yellen: No change to policy

Washington - AFP

New Federal Reserve chair Janet Yellen said Tuesday that she had no plans to change monetary policy from that mapped out by her predecessor Ben Bernanke. In her first comments on the US central bank's path forward after the took the helm on February 1, Yellen said the Fed would continue to slowly reel in its huge stimulus while keeping a close eye on the labor market, where recovery remains "far from complete." "I expect a great deal of continuity in the FOMC's approach to monetary policy," she told the Financial Services Committee of the US House of Representatives, referring to the Fed's policy body, the Federal Open Market Committee. "I served on the committee as we formulated our current policy strategy and I strongly support that strategy," she said, according to the prepared text of her testimony. The hearing is scheduled to begin at 10:00 am (1500 GMT). Yellen said the Fed expects the US economy to grow at a "moderate" pace in 2014-2015, with inflation subdued and no significant danger from the turmoil in emerging markets, some of it sparked by the Fed's own policies of reducing the bond-buying stimulus program. The recent bouts of volatility around the world "do not pose a substantial risk to the US economic outlook," she told the panel. However, in an acknowledgement of the poor job growth numbers of the past two months that appeared to contradict the sharp fall in the unemployment rate, she stressed that the Fed still sees serious problems in the jobs market. Even at January's 6.6 percent, the unemployment rate is "still well above" the level that FOMC policymakers think would be a strong and sustainable level. She stressed that the number of people forced to work part-time because they cannot find a full-time job "remains very high. In addition, she said, there is still a large number of people who have been jobless and looking for a job for more than six months. In December 2012 the Fed set a reference unemployment rate for winding up its quantitative easing stimulus and beginning to tighten monetary policy overall at 6.5 percent, which it expected to be achieved only later in 2014. But the jobless rate has fallen much faster than expected, from 7.9 percent in January 2013 to the 6.6 percent level hit last month. At the same time, job creation has not been as strong as hoped, and in the past two months has been strikingly weak. Economists explain the divergence as representing not people getting jobs but more just dropping out of the market, and so not counted as unemployed. Yellen's pointing to the high numbers of long-term unemployed and the high number of those with part-time work suggests the FOMC will not begin tightening, or increase its benchmark interest rate, now at 0-0.25 percent, if the 6.5 percent level is hit soon. Crossing that threshold "will not automatically prompt an increase in the federal funds rate," she said. Instead, that would only indicate that it "had become appropriate" for the FOMC to consider whether overall economic growth would justify a rate hike. Yellen also stressed that inflation remained tame, while suggesting there was little threat either of deflation. Although the inflation rate has been a low one percent, far from the FOMC target of two percent, she said that the recent weakness was likely "transitory," more due to falling prices for crude oil and for non-crude imports.

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 fed\s new chief yellen no change to policy Arab Today, arab today fed\s new chief yellen no change to policy

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Leader Omar Abdel Rahman dies in US prison

GMT 19:00 2017 Sunday ,19 February

Leader Omar Abdel Rahman dies in US prison
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 05:26 2017 Sunday ,19 February

US natural gas market tightens

GMT 05:06 2017 Sunday ,19 February

Merkel: Euro is too low for Germany

GMT 04:58 2017 Sunday ,19 February

Swedish PM: Brexit deal in 2 years is unlikely

GMT 20:02 2017 Saturday ,18 February

Gold edges higher as global equities lose momentum

GMT 10:20 2017 Thursday ,16 February

New Zealand's Spark rings up interim profit rise
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
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