ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Web Stories
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • IPL 2023
    • Karnataka Elections 2023
    • Viral
    • Education
    • Jobs
Read in App
Business News » World News

Federal Reserve Chair Janet Yellen: US economy faces 'considerable uncertainty'

Yellen was speaking days after the Fed`s policy body, the Federal Open Market Committee, turned more dovish in its view of the economy.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Federal Reserve Chair Janet Yellen: US economy faces 'considerable uncertainty'
Yellen was speaking in semi-annual testimony to Congress on the state of the US economy and Federal Reserve policy. Photo: AFP

Federal Reserve Chair Janet Yellen said Tuesday that the US economy faces "considerable uncertainty" from slower domestic activity and from a possible British vote to break with the European Union.

Pointing to recent slower hiring and investment domestically, and to the risk that a pro-Brexit vote will send shock waves through global markets, Yellen signaled that the Fed has become less optimistic about US growth over the short term and will proceed with great caution on plans to raise interest rates.

She said in testimony to the Senate Banking Committee that US growth has picked up noticeably in the second quarter from the sluggish pace at the beginning of the year. Nevertheless, she said economic growth has been uneven and clear downside risks remain a threat.

"Considerable uncertainty about the economic outlook remains," she said in prepared testimony. "The latest readings on the labor market and the weak pace of investment illustrate one downside risk -- that domestic demand might falter," she said.

Added to that, Yellen said, are the challenges of slower growth and reform hurdles in China, and the referendum in Britain on Thursday on pulling out of the European Union, which could radically alter Europe`s economic framework.

"One development that could shift investor sentiment is the upcoming referendum in the United Kingdom," she said. "A UK vote to exit the European Union could have significant economic repercussions."

Yellen was speaking days after the Fed`s policy body, the Federal Open Market Committee, turned more dovish in its view of the economy as it again kept its benchmark interest rate locked at an ultra low level on Wednesday.

While Yellen reiterated the FOMC`s expectations that it could increase the federal funds rate twice before the end of the year, ending 2016 close to 1%, she also highlighted risks to the longer term.

She noted that a number of prominent economists have argued that slow productivity growth in the United States will continue in the future, dampening overall growth. "We cannot rule out" that possibility, she said.

And she said that as long as other domestic weaknesses persist, like slow household formation and business investment, and if global risks remain significant, then the Fed needs to hold interest rates ultra-low "to keep the economy operating near its potential."

Yellen was speaking in semi-annual testimony to Congress on the state of the US economy and Federal Reserve policy.

Despite her concerns over the short-term outlook, she reiterated that she and the FOMC were fairly confident in the medium term outlook that growth will remain moderate, that companies will continue to hire workers at a steady pace and that inflation, which has been overly weak, will turn upward.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Janet YellenFederal ReserveSenate Banking CommitteeFederal Open Market CommitteeUS EconomyEconomy
Written By: AFP
Updated: Tue, Jun 21, 2016
09:17 pm
Washington, AFP
RELATED NEWS
US Treasury Secretary Janet Yellen says debt ceiling deadline extended to June 5 US Treasury Secretary Janet Yellen says debt ceiling deadline extended to June 5
Is US about to run out of cash? What market expert Ajay Bagga thinks Is US about to run out of cash? What market expert Ajay Bagga thinks
Janet Yellen says US may run short of cash after June 1 without debt limit hike Janet Yellen says US may run short of cash after June 1 without debt limit hike
US Treasury Secretary Yellen says overall economic outlook ‘reasonably bright’, despite some global downside risks US Treasury Secretary Yellen says overall economic outlook ‘reasonably bright’, despite some global downside risks
Yellen, caught between markets and US Congress, tweaks bank safety message Yellen, caught between markets and US Congress, tweaks bank safety message

LATEST NEWS

Reliance Industries, TCS, HDFC Bank, ITC - 7 of top-10 most-valued firms lose Rs 65,656 crore in market valuation

Expect PV segment growth to moderate to 5-7% this fiscal: Tata Motors

NCLT hits a new high, approves record 180 resolution plans in FY23

'There are things bigger than politics when you step outside the country': External Affairs Minister Jaishankar

Odisha train accident news: 100 bodies brought to AIIMS, CM Patnaik announces Rs 5 lakh ex-gratia

Uttar Pradesh: Khelo India Games conclude, CM Yogi says such events taking sports to new heights

India has incredible engineering power, says CEO from Silicon Valley

Google removes malicious Chrome extensions with 75 mn installs from Web Store

US President Joe Biden says he is heartbroken by train crash in India

Mother Dairy to invest Rs 400 crore to set up unit in Nagpur: Gadkari

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. Indiadotcom Digital Private Limited. All Rights Reserved.
LIVE TV