Federal Reserve Chair Janet Yellen told lawmakers the central bank must press on with record monetary stimulus to combat persistent job-market weakness.
While her “overall view is more positive,” Yellen said low wages are one sign of “significant slack” in labor markets, even after the jobless rate fell to an almost six-year low. In unusually emotive language for a central banker, she talked about the “psychological trauma” suffered by the unemployed and their families.
So let’s keep hiking up commodities prices while devaluing their savings so they can be really traumatized by being unable to buy food.
When Senator Jon Tester, a Montana Democrat, asked Ms. Yellen about the greatest risks to that growth forecast, she seemed flummoxed by the question, eventually reiterating the Fed’s confidence that growth would continue.
Don’t ask her about risk. Liberals don’t understand that their approach can possibly be risky or wrong.
Fed officials including Ms. Yellen have said that they are puzzled by the lack of volatility in financial markets, suggesting that investors have developed an unwarranted degree of confidence about the Fed’s intentions.
Sure. QE and more QE. Yellen pushing QE is as surprising as Kim Jong Un threatening to nuke someone.
The Standard & Poor’s 500 Index fell as much as 0.6 percent as the Fed’s Monetary Policy Report said valuations for smaller companies in social-media and biotech industries appear “substantially stretched.” The index was down 0.1 percent to 1,974.98 at 2:43 p.m. in New York. The yield on the 10-year Treasury note was little changed at 2.55 percent.
Obama’s war on the economy continues.