Cyclical character of US unemployment makes monetary policy a remedy, says Yellen
Federal Reserve chair says unemployment is still a long way from target
Janet Yellen, the chair of the Federal Reserve, believes US unemployment remains a long way from levels consistent with an economy at full tilt, but that its predominantly cyclical character means it can be addressed successfully through monetary policy.
"The unemployment rate consistent with maximum sustainable employment is now between 5.2% and 5.6%, well below the [current] 6.7% rate," Yellen said yesterday in Chicago, a city that remains a tougher-than-average market for workers. Peaking at
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