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 Wealth Manager Retreat 2017: size isn't everything

Wealth Manager Retreat 2017: size isn't everything

We asked our delegates at the Wealth Manager Retreat what they think about the recent wave of consolidation in the industry.

1 Comment Play CIO Tapes - part 3: 'passive funds are anti-capitalist'

CIO Tapes - part 3: 'passive funds are anti-capitalist'

Citywire recently gathered three of the UK's leading fund investment heads to discuss their hopes, fears and the issues that their jobs throw at them daily.

Play CIO Tapes: do investors have it as good as it gets?

CIO Tapes: do investors have it as good as it gets?

Citywire gathered three of the UK's leading fund investment heads to discuss what they fear and what makes them cheer about the year ahead

Read More
Your Business: Cover Star Club

Profile: Rathbone's Newcastle boss on the road to £1bn

Profile: Rathbone's Newcastle boss on the road to £1bn

Starting from zero assets on day one, Rathbone's Newcastle team now looks after just over £400 million in clients money

Wealth Manager on Twitter