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Janet Yellen says watching inflation closely but economy is strong

The US central bank voted to hold interest rates steady at its last policy meeting in September


Janet Yellen (Photo: Reuters)
Janet Yellen (File Photo: Reuters)

The remains strong and the strength of the labour market calls for continued gradual increases in despite subdued inflation, Chair said on Sunday.

"We will be paying close attention to the data in the months ahead," Yellen said in prepared remarks at an banking seminar in Washington. "My best guess is that these soft readings will not persist." Yellen also said she expected the to exceed its long-term trend during the second half of the year and repeated the impact of recent hurricanes on the should be temporary. 

The central bank voted to hold steady at its last policy meeting in September. Since then, Yellen has repeatedly acknowledged rising uncertainty on the path of inflation, which has been retreating from the Fed's 2 per cent target rate for much of the year. Minutes from the meeting, released last Wednesday, showed policymakers had a broad debate about recent soft and the impact on if it fails to rebound.

“We ask the Board and Management to review all possible options to enhance the World Bank Group’s financial capacity and develop a package of measures, including internal levers and general and selective capital increases, for Governors’ consideration, with the aim of reaching a decision at the 2018 Spring Meetings,” the committee said.

A World Bank official said these options could include a selective capital increase with only certain countries contributing, a general capital increase from all shareholders or internal measures to stretch resources such as raising for higher-income borrowers, adjusting equity-to- loan ratios higher, or other steps that would not need the approval of shareholders.

First Published: Mon, October 16 2017. 01:51 IST