U.S. economy requires additional support "for some period of time," said the head of the U.S. Federal Reserve Janet Yellen, speaking at a conference in Chicago.
In addition, she said that the country's economy still has some weakness and the labor market has not yet recovered to the normal state.
Yellen noted that the decline of quantitative easing program (QE) does not mean that the U.S. Federal Reserve waives policy of stimulating the economy.
She believes that the Fed's policy, aimed at maintaining the economic recovery, will take another period of time, adding that this view is shared by most members of the committee on open market operations of the Fed.
According to the U.S. central bank, the total employment in the U.S. will be achieved by reducing unemployment to 5.2-5.6%. The current decline in unemployment to 6.7% did not lead to an increase in wages, and about 7 million people who work in the form of underemployment, still looking for a full time job, noticed Yellen.
Since the 2007-2009 recession, the Fed has effectively printed some $3 trillion. It has kept interest rates near zero for more than five years, and this month said it will keep them there for a considerable time even after it ends its bond-buying program, which is to be wound down later this year.
In her speech to some 1,100 people at a downtown convention center, Yellen said the "recovery still feels like a recession to many Americans, and it also looks that way in some economic statistics."
She said "considerable" slack still exists in the job market and said further monetary stimulus could be effective.
"I think this extraordinary commitment is still needed and will be for some time, and I believe that view is widely shared by my fellow policymakers," Yellen said.
“Though the Fed works through financial markets, our goal is to help Main Street, not Wall Street.” she added.
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USDJPY – March 31th 2014
GBPUSD – April 1st 2014