Yellen: Recent Volatility in Global Financial Markets "Does Not Pose a Substantial Risk to the U.S. Economic Outlook"

By
A A A

In her prepared statement to Congress, Janet Yellen addressed the recent turmoil in emerging markets and its possible impact on Fed policy. Her comment suggests that the Fed does not believe there is any spillover impact on the U.S., therefore there is little reason to suspect the FOMC will adjust the taper to offset market headwinds.

Yellen also said the FOMC has "emphasized that a highly accommodative policy will remain appropriate for a considerable time after asset purchases end" and that the "current low target range for the federal funds rate [will be] appropriate at least as long as the unemployment rate remains above 6.5 percent, inflation is projected to be no more than a half percentage point above [the] 2% longer-run goal, and longer-term inflation expectations remain well anchored."

If the economy does satisfy all of these conditions, Yellen rules out an automatic increase in the Fed funds rate, but it will instead "indicate only that it had become appropriate for the Committee to consider whether the broader economic outlook would justify such an increase."




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

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.



This article appears in: Investing , Commodities

Referenced Stocks:

MT Newswires

MT Newswires

More from MT Newswires:

Related Videos

Stocks

Referenced

Most Active by Volume

42,932,337
  • $16.5225 ▼ 0.88%
35,045,105
  • $130.71 ▼ 0.81%
30,531,117
  • $34.875 ▲ 1.26%
29,499,299
  • $34.45 ▲ 1.29%
28,584,377
  • $57.055 ▲ 1.43%
27,968,396
  • $27.39 ▼ 0.87%
27,343,650
  • $18.375 ▲ 0.57%
22,849,366
  • $3.855 ▲ 1.45%
As of 5/29/2015, 03:35 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com