Janet Yellen warns against the dangers of a ‘boom-bust policy’
New York — Federal Reserve chairwoman Janet Yellen stuck by her prediction that US inflation will soon rebound but offered on Tuesday an unusually strong caveat: she is "very uncertain" about this and is open to the possibility that prices could remain low for years to come. A day after announcing her retirement from the US central bank, planned for early February, Yellen said the Fed was nonetheless reasonably close to its goals and should continue to gradually raise interest rates to keep both inflation and unemployment from drifting too low. Yellen, one of the most powerful figures in world finance who also weighed in on the challenges women face in economics, said she did not believe that inflation expectations had drifted down too much despite five years of below-target US price readings. Inflation should rebound over the next year or two, she said, adding: "I will say I am very uncertain about this. My colleagues and I are not certain that it is transitory, and we are monitori...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.