Slack remains in American labor market, says Janet Yellen
August 23 , 2014
Janet Yellen, the US federal chief, has said that slack remains in the American job market.
Citing the “considerable uncertainty” over the employment level, she called for a more nuanced manner of assessing the slack. Yellen also stressed that labor resources were underutilized.
She said in case inflation increased faster than expected, a hike in the federal funds rate target could be pushed forward.
In case of “disappointing” economic performance, future interest rates were expected to be “more accommodative”, she said.