Federal Reserve Continues Stimulus Cuts

Federal Reserve Continues Stimulus Cuts

The new chair of the Federal Reserve has made a statement today regarding the US stimulus. Ms Janet Yellen has said that it will continue to cut its stimulus measures for the US economy and shall be taking the same approach as her predecessor Ben Bernanke.

Ahead of a House of Representatives committee hearing, Ms Yellen made her first testimony since taking over the position.

Ms Yellen spoke of the US economy, its improving state and that as it continued to recover the bank would take more steps to reduce its support. She also signalled that the banks interest rates would remain low.

The chair also made comments regarding the fall in unemployment numbers. However she emphasised that she will be reviewing the health of the labour market as it was important to consider “more than the unemployment rate”.

The US has seen the numbers of unemployment drop from 7.9% to 6.6%, but the last two months saw weak employment growth.