Yellen opening statement: Most measures of labor market slack haven't improved this year

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    Highlights from Yellen's opening statement

    • Steady unemployment despite more jobs, suggests more people entering workforce
    • Measures of slack have shown little change since Jan
    • Economy to expand at moderate pace in next few years
    • PCE inflation still short of 2% objective, was less than 1% in year through July
    • Inflation expectations remain reasonably well-anchored
    • Our decision does not reflect lack of economic confidence
    • Gradual hikes likely to be sufficient to get to neutral policy over the next few years
    • Median forecast revised down quarter-point to half-point in dot plot
    • Economic outlook is inherently uncertain

    Her point here is that the labor market had more slack in January than they thought because all the new jobs haven't led to a lower unemployment rate or wage inflation.

    This Fed slide from Yellen's press conference forecasts some pretty dismal growth in the long term.


    The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



    This article appears in: Investing , Forex


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