The US slows down and the job market is unsatisfying, but the Federal Reserve remains optimistic. In fact, US GDP grew by 0,1%, the slowest pace since the fourth quarter of 2012. A slowdown attributable to temporary factors, such as the wave of bad weather that hit America at the beginning of 2014.
Janet Yellen, Fed chair, is not discouraged: “Many of the recent indicators suggest that the recovery in spending and output is already underway, putting growth on the right trajectory this quarter,” she said in her committee address. Joint Economic Congress. Despite the slowdown recorded in the first three months of the year, the economy in the current year, notes Yellen, is destined to improve on the +1,9% achieved in 2013.
The problem remains the labor market, which is improving, but whose conditions are "decidedly unsatisfactory", with the risks associated with too low inflation. It is for this reason that the American Central Bank will continue to guarantee its support to the economy: "In light of the fact that the labor market is very weak and that inflation remains below the optimal target (by 2%) – said Yellen – a high degree of monetary accommodation remains assured”.
In her opening speech, Yellen also cited the crisis in Ukraine as a risk to the economic outlook: "The increase in geopolitical tensions or an intensification of financial stress on emerging markets could undermine confidence in the global recovery".
Yellen's words do not convince the markets. Around 17 the Nasdaq loses more than a point, while the Dow Jones travels just below zero. Piazza Affari yields by 9 tenths of a point.
