Fed Chair Yellen Offers no Timetable on Raising Rates - KTVN Channel 2 - Reno Tahoe News Weather, Video -

Fed Chair Yellen Offers no Timetable on Raising Rates

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Federal Reserve Chair Janet Yellen isn't offering any timetable for raising the target for short-term interest rates.
 
She told lawmakers today that while the economy is improving, the job market is "far from satisfactory." And as a result, she says she expects lower borrowing rates will be needed for a "considerable time."
 
Yellen says the Fed expects to begin raising rates when it sees enough progress in restoring full employment, and when inflation is back up to its target of 2%.
 
But she stressed that the Fed wants to avoid past mistakes of keeping its policies loose for too long and fueling inflation. She noted the prolonged bout of high inflation in the 1970s and said that "none of us want to make that mistake again."
 
Yellen's testimony today was her first since the government said Friday that the economy added 288,000 jobs in April. It was the biggest hiring surge in two years. The jobless rate dropped to 6.3 percent.
 
But Yellen is warning that the share of the unemployed who have  been out of work for more than six months, and the number of people working part-time who would prefer a full-time job, are at historic highs. And she says weak gains in wages are a signal of a subpar job market. (AP)
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