Name: US Fed's Yellen anticipates gradual pace in interest rates rises
Uploaded: 2017-07-14T04:30:39.000Z
Duration: 1 min 51 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Janet Yellen is sounding upbeat about the U.S. economy

citing strong jobs growth and rising home prices which tend to spur consumer spending.

The labor market has continued to strengthen.

Job gains has averaged a hundred eighty thousands per month so far this year

down only slightly from the average in 2016.

and still well above the pace we estimate

would be sufficient on average to provide jobs for new entrance to the labor force.

Strong jobs growth normally leads to higher wages,

and when combined with a boost in employment

it generally puts upward pressure on consumer prices.

But, inflation has be stubbornly subdued.

The committee continues to expect that the evolution of the economy

will warrant gradual increases in the federal funds rate over time

to achieve and maintain maximum employment and stable prices.

that federal funds rate remains somewhat below its neutral level.

That is the level of federal funds rate that is neither expansionary nor contractionary

and keeps the economy operating on an even keel.

Many in the financial industry interpret this language as being a strong hint

that the Fed is likely to slowdown the pace of future rate hikes.

And though Yellen says there's still a lot of uncertainty,

she's still sticking to her original thesis

which is if economic conditions continue as they are,

and that will need higher interest rates in order to contain it.

Subtitles ListPlay Video

US Fed's Yellen anticipates gradual pace in interest rates rises

stick

eventually

average

slightly