Wall Street Journal (07/15/14) Jon Hilsenrath
Interest rates should remain low for the time being, but they could be raised earlier than anticipated if the labor market continues to improve, U.S. Federal Reserve chairman Janet Yellen yesterday told the Senate Banking Committee. The labor market is bouncing back quicker than expected, she said, although it is still plagued by low levels of labor-force participation and slow wage growth. The Fed’s short-term rate has been close to zero since late 2008. Yellen said the agency has been fooled by false signs of economic recovery before, so caution is needed.
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