Skip to comments.WRAPUP 3-Yellen argues for more Fed easing amid Europe risk (of course!)
Posted on 06/07/2012 7:34:34 AM PDT by TigerLikesRooster
WRAPUP 3-Yellen argues for more Fed easing amid Europe risk
Thu Jun 7, 2012 7:56am IST
By Ros Krasny
(Reuters) - The Federal Reserve's second-highest official on Wednesday laid out the case for the U.S. central bank to provide more support to a fragile economy as financial turmoil in Europe mounts.
Janet Yellen, the vice chair of the Fed, cited risks from ongoing housing problems, a weak jobs market and worsening financial conditions in a speech in Boston. Her views carry great weight with Fed Chairman Ben Bernanke, and her comments suggest that the Fed may be close to easing policy again.
Yellen said the U.S. economy is growing at around a 2 percent rate and said the labor market seems to have stalled - and that is before the scheduled year-end expiration of various tax cuts that she said would be another "huge drag" on growth.
"There are a number of significant downside risks to the economic outlook, and hence it may well be appropriate to insure against adverse shocks that could push the economy into territory where self-reinforcing downward spiral of economic weakness would be difficult to arrest," she said.
(Excerpt) Read more at in.reuters.com ...
Oh, goody. Another QE coming.