Fed reserve policy makers said that they expect to keep interest rates low for a some time after the end of quantitative easing. With the weakness in our job market, this seems to be the right decision. Janet Yellen, the fed chair, said that since the recovery that began in 2009, the economy continues to progress towards their goal of fully sustainable maximum unemployment, but is still not quite there just yet. Yellen also stated that there is still too much unemployment and underemployment despite the recent improvement in the job market. The fed focuses on keeping the inflation rate near their goal of 2%, which currently is well below their goal, but Yellen expects the inflation rate to creep closer to the 2% mark as our economy continues to improve. The decision of choosing between keeping interest rates low for a longer period of time, or to raise interest rates is one the fed had no trouble deciding on. They believe that keeping interest rates low will continue to help the labor market which seems to be the right decision.
This article is a good read for anyone who is interested or curious in what the fed reserve policy makers plan on doing to try and continue our economies growth. There are quotes from the fed chair, Janet Yellen, which help clarify what our current situation is and what their plans are in the near future that will have an affect on our economy, which is important to stay up to date on.
http://www.usnews.com/opinion/economic-intelligence/2014/09/19/janet-yellen-and-the-federal-reserve-are-right-to-focus-on-jobs
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