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Recovery incomplete, says Janet Yellen

July 16, 2014



In a strong defence of the central bank's current stance, Yellen said that early signs of a pickup in inflation aren't enough for the Fed to accelerate its plans for raising interest rates, a move currently expected in the middle of next year.



The US economic recovery remains incomplete, with a still-ailing job market and stagnant wages justifying loose monetary policy for the foreseeable future, Federal Reserve Chair Janet Yellen told a Senate committee on Tuesday.







In a strong defence of the central bank's current stance, Yellen said that early signs of a pickup in inflation aren't enough for the Fed to accelerate its plans for raising interest rates, a move currently expected in the middle of next year.







That could change, with interest rates rising sooner and faster, if data show labour markets improving more quickly than expected, she said.







But as it stands, "although the economy continues to improve, the recovery is not yet complete," Yellen said in semi-annual testimony before the Senate Banking Committee, repeating her focus on lagging labour force participation and weak wage growth as key to any conclusions about the economy's health.







"Too many Americans remain unemployed," Yellen said.




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Source: Khaleej Times (United Arab Emirates)


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