In no rush to change policy, Fed vice-chair Janet Yellen says 6.5% unemployment and 2% inflation...

|By:, SA News Editor

In no rush to change policy, Fed vice-chair Janet Yellen says 6.5% unemployment and 2% inflation are thresholds for possible (her emphasis) action, not triggers requiring a quick tightening of policy. Particularly interesting is her insistence fiscal policy has been more headwind than tailwind in this recovery. Not structural, high unemployment today is about a lack of aggregate demand.