Wealth Manager - the site for professional investment managers

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration 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 Boutique tapes: my business will never be sold

Boutique tapes: my business will never be sold

In the final part of our four part series we discuss consolidation and whether it's getting tougher for boutiques to survive.

Play Boutique tapes: are top managers better off at small firms?

Boutique tapes: are top managers better off at small firms?

In episode three of our series, boutique bosses discuss whether the best fund managers are more likely to thrive at smaller firms.

Play Boutique tapes: if you want a Ferrari, you have to pay for it

Boutique tapes: if you want a Ferrari, you have to pay for it

In the second part of our four-part series, boutique bosses are asked how they can justify the fees charged by active managers.

Read More
Your Business: Cover Star Club

Profile: how this boutique beat the big guns of wealth

Profile: how this boutique beat the big guns of wealth

This small west country offshoot of a local IFA scooped a 2018 Citywire award from beneath the noses of the national challengers

Wealth Manager on Twitter