Yellen: U.S. economy still needs support

Yellen: U.S. economy still needs support

SHARE

Head of the U.S. Federal Reserve Janet Yellen said that the weakness of the U.S. labor market suggests the need to maintain the unprecedented support from the regulator for ” some time ” to allow the majority of Americans wanting to find a job.

High unemployment , low growth rates of wages and other labor market problems show that Fed officials should keep easy monetary policy , Yellen said in a speech in Chicago.

” This extraordinary necessarily still necessary and still be required for some time , and I believe that my opinion is shared by the Fed colleagues – said Yellen . – Scars Great Recession still remain, and to achieve our goals will take time .”

Fed seeks to reduce borrowing costs , limit the rising cost of energy and make the creation of jobs for 10.5 million unemployed American using bond-buying program . Basic interest rate remains about zero from December 2008

Although the volume of monthly purchases of assets has been reduced from $ 85 billion to $ 55 billion , Yellen said the preservation of the “strong commitment ” to support progress in the labor market .

“Recent steps to reduce the rate the Fed purchases of securities are not an attempt rejection of our commitments , and reflect the view that progress in the labor market requires a smaller amount of our aid,” – she said.

Recall that the U.S. unemployment rate in February rose to 6.7% compared with 6.6 % in January, although job growth was higher than economists’ forecasts .

SHARE