President of the Federal Reserve was to meet bankers in Jackson Hole say that there is no simple recipe for dealing with inflation and unemployment. Janet Yellen on arrival at the meeting of bankers usps express mail international in Jackson Hole David Stubbs / Reuters
When the unemployment rate in the world's largest economy is 6.2% and the number of jobs already above 2008 levels at the beginning of the recession, this means that the damage of the crisis on employment are repaired? usps express mail international The chairman of the US Federal Reserve (Fed), Janet Yellen, believes there and remember that there is still a way to go in improving labor market conditions. But faster as is the decline usps express mail international in the unemployment rate, sooner happen to rise in key interest rates by the Fed.
The unemployment rate, which has been falling over the past two years, reached 6.1% in June, but increased again in July, albeit tenuously, to 6.2% of the workforce. usps express mail international Fed's reference interest rates remain near zero since December 2008, a historically low level that has helped pull the economy in recent years, together with extraordinary measures to create more liquidity in the economy (purchase program financial assets). But with the US recovery and the gradual decline in unemployment, especially usps express mail international from the end of 2013, analysts question whether the decline in unemployment should not take the Fed to consider usps express mail international a rate hike.
Yellen sought to address these concerns, without, however, giving any sign of the onset of higher interest. Considered there is no simple recipe for dealing with a backdrop of "considerable uncertainty" regarding the evolution of inflation and unemployment. If recovery of the labor market "continues to be faster than predicted by the Committee [monetary policy] and inflation rise faster than estimated, resulting in a greater convergence of the double objective of the Fed [price stability and the employment], the rise in interest rates on federal funds may occur earlier than the Committee currently provides. " As for the beginning of rising interest rates, Yellen said nothing.
If the expectation of the Fed is that this recovery continues, the uncertainty about the evolution of inflation and unemployment led to Yellen also leave some reservations: "Of usps express mail international course, if economic performance is disappointing and the recovery is slower than expected, future path of interest rates may be more flexible than we anticipate. "
Yellen recalled usps express mail international some recent figures on the labor market: this year, the monthly job creation was 230,000 on average, while the last two years the average was 190,000 per month.
He made a point to remember that unemployment reached in 2009 (October) a peak of 10%. The fact that unemployment have retreated "considerably" in the past year, a pace that the president of the Fed considers even surprising lead Yellen to speak of "encouraging" data, it points that five years after the recession, damage the crisis are not yet fully repaired.
Despite the reduction in unemployment, there is, for the responsibility of the Federal Reserve, a significant under-utilization of resources of the labor market, reading that the monetary policy committee of the Fed has already mentioned at the last meeting, on 29 and 30 July.
Prudence usps express mail international that Yellen is expressed - presenting on the one hand, the signs of labor market recovery, but doing the other, a counterpoint to speak of the uncertainties still hanging usps express mail international over the economy - is a constant of the head of the speeches Fed (as was the case with its predecessor, Ben Bernnake, who was vice president, and as indeed is part of the genetic code of central bankers).
"In the five years since the end of the Great Recession [which lasted from December 2007 to June 2009], the economy has made considerable progress," but the labor market "has not fully recovered," he stressed.
The latest indicators (very short term) show that the number of applications for unemployment benefits fell again - last week there has been a decrease of
No comments:
Post a Comment