Fed sees job market still needs low rates
Print Edition
FEDERAL Reserve Chair Janet Yellen made clear yesterday that she thinks the still-subpar US job market will continue to need the help of low interest rates “for some time.”
Yellen’s remarks signaled that even after the Fed phases out its monthly bond purchases later this year, it has no plans to raise a key short-term rate anytime soon. The bond purchases have been intended to keep long-term loan rates low.
Her remarks sent a reassuring message to investors, many of whom had grown anxious that the Fed might raise short-term rates by mid-2015. Their concerns were stirred in February when Yellen suggested that the Fed could start raising short-term rates six months after it halts its bond purchases, which most economists expect by year’s end.
A short-term rate increase would raise borrowing costs and could hurt stock prices.
But yesterday, Yellen made clear that the US central bank still thinks rates should remain low to stimulate borrowing, spending and economic growth.
“I think this extraordinary commitment is still needed and will be for some time, and I believe that view is widely held by my fellow policy-makers at the Fed,” Yellen said in her first major speech since taking over the Fed’s leadership in February.
Speaking to a national conference on community reinvestment in Chicago, Yellen described the US job market as being less than healthy despite steady improvement since the recession ended nearly five years ago. She says the difficulty many people are still having finding full-time work shows that low rates are still needed to encourage borrowing and spending.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
