|
FINANCIAL PLANNING WEALTH/ASSET STRATEGIES RETIREMENT PLANNING STRATEGIES FOR BUSINESS OWNERS BUSINESS INSURANCE SERVICES · Property/Casualty · Employee Group Programs PERSONAL INSURANCE SERVICES
|
Economy
Yellen Says Economy, Housing Aside, is Strong
Source: money.cnn.com
October 16, 2006
San Francisco Fed president would like to see economy slow to relieve wage pressure.
SAN FRANCISCO (Reuters) -- The U.S. economy is still strong outside of the housing sector and would benefit from a spell of slower growth to tamp down wage pressures, San Francisco Federal Reserve Bank President Janet Yellen said on Monday.
Outside of the third quarter, for which most forecasts suggest economic growth is likely to be less than 2 percent on an annualized basis, risks with respect to growth are more two-sided, Yellen told reporters after a speech here.
"We would like to see the economy slow some to relieve wage pressures," she said.
Still, Yellen said that financial markets' stable inflation expectations for the five- to 10-year period "shows confidence" in the central bank's interest rate policies.
Yellen made the announcement on the same day No. 1 chipmaker Intel (Charts) executives at a developers' forum hosted by Intel in Taipei forecast a strong fourth quarter for notebook computers and Wachovia Corp (Charts)., the No. 4 U.S. bank, said third-quarter profit rose 13 percent, helped by growth in fees and lending income.