The former Yellen president, who is famous for his hard-earned monetary policy in the US, has spoken out in support of the Fed's intere...
The former Yellen president, who is famous for his hard-earned monetary policy in the US, has spoken out in support of the Fed's interest rate cut at 25% from the current level.
The global economy weakens and US inflation remains low, which is why Ms. Yellen supports interest rate cuts. In addition, this woman also stressed that the United States is not an island but a part of the global economy. What happens to the rest of the world will certainly affect America.
"The global economy is weakening. I think it is part of the trade conflict and uncertainty for businesses," Yellen said in an Aspen Economic Strategy Group meeting in Aspen, Colorado. July 28 evening local time.
Currently, FED is likely to cut interest rates in the meeting at the end of July. Most observers believe that FED will cut ¼ in comparison with current interest rates. If this becomes reality, this is the first time the Fed has cut interest rates for more than a decade.
The interest rate cut is expected to happen despite recent data showing that the US economy is growing strongly. The July employment report is expected to increase by 170,000 non-farm jobs with an extremely low unemployment rate of 3.7%. Earlier, the data also showed an economic growth rate of 2.1% in the second quarter, better than expected.
However, the US cannot avoid the effects of the slowing global economy. In addition to the US, Asian countries and the European Union (EU) are struggling to prevent the effects of the recession. Meanwhile, US monetary policies continue to affect conditions on a global scale.
Ms. Yellen led the Fed for a four-year term, ending on February 3, 2018. During this period, FED raised interest rates in December 2015. This broke nearly a decade of not raising US interest rates. This is also seen as a milestone marking the consecutive times FED raised interest rates in the past few years. The way that policy makers prepare early for a future recession.
If it becomes a reality, the interest rate cut after the July 31 meeting will become a prerequisite move. In response to the growing concern about the decline in global growth as well as the impact of the ongoing trade war between Beijing and Washington. FED also emphasized that there will be actions to prolong economic growth if necessary.
According to Ms. Yellen, the United States should focus on maintaining a strong economy and keeping growth going. The well-known woman who is tough on this monetary policy also thinks that lowering interest rates is appropriate.
Mr. Nerd
