Janet Yellen and Labour Market

labour markets: Fed Chair Janet Yellen, however, emphasized that the rate decision was still up in the air and rested squarely on further improvement in the labour market – renewing her focus on a longstanding concern, according to Euro News. In a press conference following the end of the Fed two-day policy meeting, Yellen said she wanted more decisive evidence that labour markets were healing, and that wages would increase beyond their current subdued pace. With the economy still on track to grow as much as 2 percent for the year, the central bank latest policy statement keeps it on track for at least one and perhaps a second rate increase later this year. Even as the Fed appeared to be approaching a decision to proceed with a rate hike as soon as September, some cyclical weakness in the labour market remains, Yellen said, pointing to the low labour force participation rate and the high level of part-time employment. After a weak start to the year, highlighted by a first-quarter economic contraction, policymakers said gross domestic product is poised to grow between 1.8 percent and 2.0 percent in 2015, down from a March forecast of between 2.3 percent and 2.7 percent. Her comments are likely to focus even more attention on upcoming U.S. employment and wage reports, as markets look for signs that continued economic growth is translating into more jobs and higher wages. (news.financializer.com). As reported in the news.