The head of the Federal reserve system (fed) Janet Yellen said to the Senate judiciary Committee that she saw “considerable uncertainty” in the economic prospects of the United States. About this newspaper the Financial Times.
As evidence of the risk Yellen cited the weak figures of reception of citizens to work and soft investment. She stated that she will adopt a cautious approach to raising interest rates.
“A cautious rise in the Federal funds rate will allow us to maintain monetary support for economic growth,” said Yellen.
Yellen also noted that a referendum on British exit from the European Union may have serious economic consequences in the short term. The fed Chairman added that in the long term the economy will face a doubt due to the possible growth of labour productivity.
According to the head of the fed in recent years has slowed the pace of improvement in the labor market. It is in this context required careful approach to the regulation of monetary policy.
In June, Yellen said the fed will not raise its key rate until, until they are resolved, new uncertainties in the economy. The fed believes that rate should be increased gradually as possible the improvement of the economic situation.