Federal Reserve Chair
Janet Yellen said on Wednesday the U.S. economy was
still in need of lots of support given the "considerable slack" in
the labor market, adding that the housing sector's weakness and geopolitical
tensions posed risks.
Even
as she took note of "appreciable" improvements in the jobs market,
Yellen told a congressional committee a high rate of long-term unemployment and
a slow rise in worker pay suggested plenty of room for further job gains.
"A high
degree of monetary accommodation remains warranted," she told the
congressional Joint Economic Committee.
Yellen said
she expected the economy to
expand at a "somewhat" faster pace than last year, but flagged
weakness in the nation's housing sector and the possibility of heightened
geopolitical tensions or the re-emergence of financial stress in emerging markets as potential risks.
U.S. stocks
slipped after her testimony was released but later steadied, while prices for
U.S. government debt were little changed. The dollar rose against a range of
currencies.
"The
only new thing in it is housing," said David Keeble, global head of
interest rates strategy at Credit Agricole Corporate & Investment Bank in
New York. "All the other comments could have been lifted from her recent
speeches."
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