Yellen Worries About Labor Market And Overseas Economy

On Thursday, US Senator Schumer said Yellen told him that the US economy is improving but still needs to create more job opportunities. This will take time.

Based on concerns about the labour market and overseas economies, Yellen said he would not raise interest rates immediately.

Yellen held a luncheon with the senators in Houses of Parliament, during which he talked about monetary policy.

According to Bloomberg news, New York Democratic Senator Chuck Schumer said Yellen said the US economy is continuing to improve, but the United States still needs to create more jobs, and the labor market needs to be improved. There are still many ways to go.

Yellen still worries about the employment creation in the United States. This is her main concern. It is also based on this worry that Yellen believes that the Federal Reserve should not raise interest rates immediately.

According to Senator Virginia Tim of the state of Yellen, Yellen expressed concern about the overseas economic situation, but he was highly optimistic about the fundamentals of the US economy.

Illinois senator Dick Durbin said Yellen talked about Europe in his talk.

It is considered one of the risk factors in economic development.

Durbin said Yellen's assessment of US fiscal policy is different from before.

In the past, she believed that in recent years, the United States government had cut spending, and Finance had dragged on the economy. Now she thinks that the role of Finance in the economy is neutral.

Federal Reserve spokesman Doug Tillett declined to comment on the contents of Yellen and congressman's speech.

The news has boosted the US stock market on Thursday.

The S & P 500 index fell 2000 points in early trading, but then rose all the way, closing close to 1%.

US senators restated Yellen's monetary policy stance and the rebound in oil prices since the six year low, all of which played a catalytic role in US stocks.

Wednesday,

The FOMC statement in January showed that the FOMC committee agreed that there should be "patience" in raising interest rates.

The Fed is more optimistic about the economy and points out that new jobs are strong, but inflation is expected to decline in the near future.

When the Fed calls the decision to raise interest rates, it will consider the overseas economy.

Jon Hilsenrath, a Wall Street Journal reporter, said the January FOMC statement implied that the Fed would not raise interest rates before June.

At the December press conference, the phrase "patience" meant that the next two FOMC meetings would not raise interest rates, which concluded that the Fed would not raise interest rates at the March and April meetings.