Fed's Yellen says austerity policies may be counterproductive
WASHINGTON (Reuters) - Austerity policies in the United States and Europe that sharply cut spending to reduce budget deficits could be self-defeating if they derail economic growth, Federal Reserve Vice Chair Janet Yellen said on Monday.
"Both for the United States and for Europe ... fiscal austerity does raise unemployment, weaken the economy and ... in addition undermines the goals for which it is designed to achieve," Yellen said.
- Still no sign of Malaysian jet lost in 'unprecedented mystery' |
- The search for missing Malaysian jet
- Mexico kills drug kingpin reported dead years ago: official
- Missing Malaysian jet may have disintegrated in mid-air: source |
- Exclusive: Malaysia plane probe narrows on mid-air disintegration - source