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Yellen: Fed needs to maintain 'high degree' of QE

Yellen: Fed needs to maintain 'high degree' of QE

Janet Yellen has said that Federal Reserve needs to maintain ‘a high degree’ of quantitative easing because there is still ‘significant slack’ in the labour market.

Addressing the Senate Banking Committee this afternoon, she said ‘a high degree of monetary stimulus remains appropriate’ in the face of a stuttering economic recovery.

Although the unemployment figure fell to a more than five year low of 6.1% in June, she said the number in work remains below target and wage growth remains sluggish.

‘Labour force participation appears weaker than one would expect based on the aging of the population and the level of unemployment,’ she said.

‘These and other indications that significant slack remains in labour markets are corroborated by the continued slow pace of growth in most measures of hourly compensation.’

She also acknowledged that keeping interest rates low encouraged investors to ‘reach for yield’, which could ‘increase vulnerabilities’ in the market.

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Profile: The opportunity set that attracted Brett Williams to wealth management

Profile: The opportunity set that attracted Brett Williams to wealth management

Brett Williams is best known for helping to build some of the biggest platforms in the IFA market.He made the move over to wealth management to head SEI’s UK business earlier this year in the belief that this is where the best opportunities now lie.

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