
Fed chief Janet Yellen | © Kevin Lamarque / Reuters
If the Fed chief Janet Yellen warned of negative consequences of high global market prices. The courses are currently “generally quite high.” This could lead to “potential hazards” Yellen said on Wednesday at a discussion meeting of the International Monetary Fund (IMF) in Washington. Nevertheless, they assessed the risks as at present rather moderate.
Yellens words weigh heavily: Investors always
Yellen also pointed to possible disadvantages resulting from the continued low-interest rate policy. This put pressure on banks and insurance companies. At the same time they defended the policy of super cheap money. These have supported in recent years economic and job market in the US.
Yellen was no evidence as to when the Fed may initiate a cautious move away from the lowest interest rates. Financial markets expect a slight course change at the earliest in summer. The key interest rates by the Fed are since the severe financial crisis in 2008, between zero and 0.25 percent.
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