News / Economy

Fed Chair: US economy still ‘quite weak’

Saturday, 28 March 2015 2:58 PM [ Last Update: Saturday, 28 March 2015 2:59 PM ]

Federal Reserve Chair Janet Yellen speaks during the Federal Reserve Bank of San Francisco Conference on March 27, 2015 in San Francisco, California. (AFP Photo)

US Federal Reserve Chair Janet Yellen has said that the economy in the United States is still "quite weak by historical standards."

She made the comments during the Federal Reserve Bank of San Francisco Conference on Friday.

Yellen also predicted the slow growth in future as a result of demographic factors and poor productivity growth.

“At an extreme, such developments could even amount to a type of ‘secular stagnation’ in which monetary policy would need to keep real interest rates persistently quite low relative to historical norms to promote full employment and price stability, absent a highly expansive fiscal policy,” she said.

The Fed chairwoman also pointed that the Fed would not push interest rates significantly higher anytime soon.

A poll conducted last month showed a clear majority of Americans said they experienced a financial shock in 2014 and feel unprepared for a financial emergency six years after the Great Recession.

The poll released by the Pew Charitable Trust found that 82 percent of US households reported suffering a financial shock such as a hospital visit, the loss of a spouse or major car or house repairs last year.

Overall, 56 percent of US families said they worried about their finances during the previous year and 57 percent did not consider themselves ready for a sudden financial setback, the survey showed.

"Despite a steady economic recovery, many Americans continue to feel vulnerable," said Erin Currier, director of Pew's financial security and mobility project.

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