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Fed's Yellen says U.S. recovery incomplete, defends loose policy

2014-07-15 7 Dailymotion

ROUGH CUT (NO REPORTER NARRATION)<br/> <br />STORY: The U.S. economic recovery remains incomplete, with a still-ailing job market and stagnant wages justifying loose monetary policy for the foreseeable future, Federal Reserve Chair Janet Yellen told a Senate committee on Tuesday.<br/> <br />In a strong defense of the central bank's current stance, Yellen said that early signs of a pickup in inflation aren't enough for the Fed to accelerate its plans for raising interest rates, a move currently expected in the middle of next year.<br/> <br />That could change, with interest rates rising sooner and faster, if data show labor markets improving more quickly than expected, she said.<br/> <br />But as it stands, "although the economy continues to improve, the recovery is not yet complete," Yellen said in semi-annual testimony before the Senate Banking Committee, repeating her focus on lagging labor force participation and weak wage growth as key to any conclusions about the economy's health.<br/> <br />The Fed face

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