Reuters - Video

EDITION: U.S. | U.K. | IN

Finance Videos

Uncertainty is what's certain about the economy: Yellen

Wednesday, May 07, 2014 - 02:38

May 7 - Fed Chair Janet Yellen told the congressional Joint Economic Committee that risks facing the U.S. economy include a disappointing housing sector, labor market imbalances, and geopolitical tensions. Lily Jamali reports.

▲ Hide Transcript

View Transcript

The theme of Federal Reserve Chair Janet Yellen's testimony before the congressional Joint Economic Committee Wednesday was risk. There's still plenty of it facing the U.S. economy. Those risks range from geopolitical tensions to the job market, which despite improvements to the unemployment rate is still vulnerable. SOUNDBITE: JANET YELLEN, CHAIR, FEDERAL RESERVE (ENGLISH) SAYING: "We've really never seen a situation where long-term unemployment is so large, so large a fraction of total unemployment. Around 35%. That's very unusual." Yellen also called out concerns on the housing sector. SOUNDBITE: JANET YELLEN, CHAIR, FEDERAL RESERVE (ENGLISH) SAYING: "One cautionary note though is that readings on housing activity - a sector that has been recovering since 2011 - have remained disappointing so far this year and will bear watching." Fred Dickson, Chief Investment Strategist at D.A. Davidson - says that's because housing is a leading indicator of what's to come in the economy. SOUNDBITE: FRED DICKSON, CHIEF INVESTMENT STRATEGIST, D.A. DAVIDSON (ENGLISH) SAYING: "She sees the housing start numbers being probably 25% of what they should be at this point in the cycle. She knows housing has a very big economic impact, with each dollar spent on a house in some ways generates four more dollars through the ancillary services, contractor, contractor spending." Yellen fielded many questions on the Fed's monetary policy - known as quantitative easing. She confirmed the program is on track to wind down by this fall. SOUNDBITE: JANET YELLEN, CHAIR, FEDERAL RESERVE (ENGLISH) SAYING: "We anticipate continuing to reduce our asset purchases in measured steps. So the answer is Yes. Now if something were to change notably about the outlook, we would reconsider that plan." Reconsideration - she said - would stem from a downturn in the labor market or disruptions to inflation, which she expects will rise to around 2% . However, the panel couldn't pin her down on when the Fed would raise rates.She was committed to staying vague on that subject. SOUNDBITE: JANET YELLEN, CHAIR, FEDERAL RESERVE (ENGLISH) SAYING: "There's no mechanical formula or timetable." SOUNDBITE: JANET YELLEN, CHAIR, FEDERAL RESERVE (ENGLISH) SAYING: "There is no specific timeline for doing that." SOUNDBITE: JANET YELLEN, CHAIR, FEDERAL RESERVE (ENGLISH) SAYING: "The Committee has simply said a 'considerable time' without mechanically stating what that time interval is." Yellen remains very concerned about the labor market. Although the latest Labor Department data shows unemployment is down to 6.3% - a five and a half year low - she says it's down for the wrong reasons. And for those still in the workforce, wages remain a worry.

Uncertainty is what's certain about the economy: Yellen

Wednesday, May 07, 2014 - 02:38

Top News »

Investing 201 »

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

The better bond funds The better bond funds

Wed, Aug 07, 2013 - (2:40)

Best bargain in 40 years? European stocks Best bargain in 40 years? European stocks

Thu, Aug 01, 2013 - (2:24)

Invest like an activist Invest like an activist

Fri, Jul 26, 2013 - (2:49)

Money Clip »

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

“Stalking” your dream home - Money Clip “Stalking” your dream home - Money Clip

Wed, Mar 27, 2013 - (2:50)

3 hidden tax deductions - Money Clip 3 hidden tax deductions - Money Clip

Thu, Mar 21, 2013 - (1:33)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)