Federal Reserve Chair Janet Yellen called for a "pragmatic" approach to U.S. monetary policy on Friday, amid calls by hawkish members of the central bank's policy committee for a quick rise in interest rates due to tightening labor markets and inflationary risks.
Reuters cited Yellenk laiding out, in a speech at the Fed's annual central banking conference, in detail why she feels the unemployment rate alone was inadequate to evaluate the strength of the jobs market and why the central bank needed to move cautiously on raising rates.
At the same time, she nodded to the concerns of some Fed officials who are growing uneasy with the sustained level of its monetary policy stimulus.
"There is no simple recipe for appropriate policy," Yellen said, arguing for a "pragmatic" approach that gives officials room to evaluate data as it arrives without committing to a preset policy path.
Source: SPA