Yellen Says Market Far From Recovered Low Rates to Remain

US interest rates are set to remain low, the new chair of the Federal Reserve, Janet Yellen, has signalled.

In her first public comments since taking over, Ms Yellen said the US labour market recovery was “far from complete”.

However, if the US economy keeps improving, she said the bank would reduce its stimulus measures.

Her testimony was released ahead of a House of Representatives committee hearing later.

Ms Yellen noted the recent volatility in global financial markets, but said that at this stage it did not “not pose a substantial risk to the US economic outlook”.

She emphasised continuity in the Fed’s approach to policy, saying she strongly supported the approach driven by her predecessor, Ben Bernanke.

While the US jobless rate has fallen, it still remains “well above levels” the Fed sees as consistent with maximum sustainable employment, she said.

In her prepared remarks, she said that in assessing the health of the labour market, it was important to consider “more than the unemployment rate”.

via BBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza