"As long as the wages remain these, the rates do not touch". Janet Yellen lives up to expectations: in her speech delivered during the summit in Jackson Hole, Wyoming, the number one of the Federal Reserve on the one hand recognized the ongoing improvement in the American labor market, while remaining vague on the subject of interest rates of interest, prudently postponed to a later date. "The economy has made considerable strides in recovering from the largest and most sustained US job loss since the Great Depression," she said.
“These developments – Yellen said again, awaiting Mario Draghi's speech scheduled for the Italian evening – are encouraging but they are a reflection of the depth of the damage on the basis of which – five years after the end of the recession – the labor market he has yet to fully recover.” As she did in front of US congressmen last July, Yellen added that if the labor market continues to improve faster than estimates or if inflation reaches the 2% target, only then will the Fed "could raise interest rates ahead of schedule. But if progress struggles to be achieved, the low rates will continue” to stay where they were brought in December 2008, ie to 0-0,25%. For now, with the employment and price stability targets getting closer, the emphasis is shifting to the weaknesses that still remain.
