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 CEO tapes 2: the right way to pay fund managers

CEO tapes 2: the right way to pay fund managers

In second part of our latest CEO series, seven fund bosses lift the lid on how they pay managers.

Play Get out of low vol, warns 'godfather' of smart beta Rob Arnott

Get out of low vol, warns 'godfather' of smart beta Rob Arnott

Rising valuations are making the Research Affiliates founder nervous, so he's advising clients to rotate into value-orientated strategies.

Play CEO tapes 2: the active fund industry has 'over promised'

CEO tapes 2: the active fund industry has 'over promised'

Citywire invited a batch of fund bosses to share their views on the industry ahead of this week's crucial FCA report.

Read More
Your Business: Cover Star Club

Profile: Rathbones' fund boss on spotting emerging talent

1 Comment Profile: Rathbones' fund boss on spotting emerging talent

A great fund manager is really easy to spot, says Mike Webb, chief executive of Rathbones Unit Trust Management

Wealth Manager on Twitter