Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

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.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Liontrust ESG head says sustainable investment doesn't mean low return

Liontrust ESG head says sustainable investment doesn't mean low return

Peter Michaelis talks about ethical investment growth and where he sees future opportunites.

Play Are platforms the biggest barrier to wealth manager ETF take-up?

Are platforms the biggest barrier to wealth manager ETF take-up?

Citywire hosted a roundtable discussion to find out how and if wealth managers are using ETFs in their clients' portfolios and the challenges they face trading through different platforms.

Play SVM's Veitch on what's next for banks

SVM's Veitch on what's next for banks

SVM fund manager Neil Veitch is finding value in what he describes as unstable financials and talks through his favourite small caps.

Read More
Your Business: Cover Star Club

Profile: Affinity’s Julia Warrander on the importance of diversity

1 Comment Profile: Affinity’s Julia Warrander on the importance of diversity

'Sometimes there are 10, sometimes 20 people around a table and, more often than not, I’m the only woman,' says the Affinity Wealth co-chief investment officer

Wealth Manager on Twitter