NEW YORK, April 11 (Reuters) – The Federal Reserve’s
ultra-easy monetary policy is appropriate given high
unemployment and the headwinds facing the economy, the No. 2
official of the U.S. central bank said on Wednesday, as she left
the door open to further action if needed.
Janet Yellen, the Fed’s influential vice chair, defending
the central bank’s expectation that it will keep benchmark
interest rates near zero through at least late 2014, said
guidance could shift in either direction depending on the
economy’s performance.
“I consider a highly accommodative policy stance to be
appropriate in present circumstances. But considerable
uncertainty surrounds the outlook, and I remain prepared to
adjust my policy views in response to incoming information,”
Yellen said in remarks prepare for delivery to the Money
Marketeers of New York University.
“In particular, further easing actions could be warranted if
the recovery proceeds at a slower-than-expected pace, while a
significant acceleration in the pace of recovery could call for
an earlier beginning to the process of policy firming” than the
central bank’s policy panel currently expects.
Yellen said while the labor market has shown signs of
improvement, the economy remains far from full employment and
the pace of economic growth is likely to be sufficient to lower
joblessness only gradually.
(Reporting By Leah Schnurr; Editing by Leslie Adler)
