Fed stands firm with low-rate stance till late 2014
Feb 7, 2012
Federal Reserve Chairman Ben Bernanke on Tuesday reiterated the Federal Reserve's plan to hold interest rates near record lows until at least late 2014., and his remarks indicate that the U.S . labor market is a “long way” from returning to normal.
Bernanke maintained his long time position: the U.S. economy is improving at a frustratingly slow pace and that low rates are necessary to boost growth.
Federal Reserve Chairman Ben Bernanke said labor market is a “long way” from returning to normal.
The Fed has kept its benchmark interest rate near zero for the past three years. In January, the Fed said in its policy statement that it would probably not increase that low rate until late 2014 at the earliest.
Ben S. Bernanke said today in response to questions at a hearing before the Senate Budget Committee in Washington that the 8.3 percent rate of unemployment in January understates weakness in the U.S. labor market.
“It is very important to look not just at the unemployment rate, which reflects only people who are actively seeking work,” Bernanke said, “There are also a lot of people who are either out of the labor force because they don’t think they can find work” or in part- time jobs.
According to a government report showed on Feb. 3, the jobless rate unexpectedly fell to 8.3 percent in January.
Read the full ariticle, please refer to Bernanke: Joblessness Understates Weakness