Fed Warns on Long Term Unemployment and Income Inequality

There are two economic trends that Federal Reserve chair Janet Yellen told Congress this week she finds “very disturbing.” Unfortunately, the Fed has very little power to fix either of them.

‘Very disturbing’ trend #1: Long-term unemployment

About 3.5 million Americans have been out of a job for at least six months.
This group accounts for 35% of all the unemployed.

“That’s a very disturbing trend, and something that we would like to be able to do something about,” Yellen said to the Senate Budget Committee Thursday.

‘Very disturbing’ trend #2: Income inequality

“We have seen a trend toward rising inequality in income and also in wealth. And I personally view this as a very disturbing trend that policymakers should be looking at and considering what is the appropriate response,” she said.

via CNN

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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