Janet Yellen has been seen as the central banker who will toe in line with the predecessor Ben Bernanke. From day one, she has supported the Federal Reserve attempts to make the liquidity scenario easier to support employment. It now seems that she is still not satisfied with the billions the US Fed has already pumped into the economy. As per Bloomberg, Yellen believes that the Fed has not done enough to combat unemployment. This certainly sounds ridiculous after having held interest rates near zero for more than five years. And at the same time pumping up its balance sheet to US$ 4.23 trillion with bond purchases. Fed chief Yellen is now inclined to keep interest rates low for a prolonged period to boost employment. Unemployment in the US was 6.7% in February, up from the 6.6% level in January 2014 that was the lowest since October 2008. While we do not think the Fed chief's decision holds much water it could certainly mean more cheap money coming into emerging markets.
Wednesday, April 2, 2014
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