Fed’s Yellen: Sees substantial headwinds for economy
- Infrastructure investment would help counter any headwinds
- Hidden slack helped reduce labour force participation
- 6.5% unemployment rate has never been the Fed’s unemployment target
- Fed monitoring a broad range of labour gauges
- Fiscal policy has been unusually tight
- Low interest rates prompt a reach for yield
- Fed needs to monitor risks from low interest rates
- Doesn’t see broad financial stability risks at the moment
- Would never rule out restarting asset purchases
- Unemployment causes psychological trauma and often brings health costs
Most Popular