SAN FRANCISCO, Sept 14 (Reuters) - U.S. unemployment that is far above the desired level means the Federal Reserve needs to keep its foot on the monetary policy accelerator for now, San Francisco Fed President Janet Yellen said on Monday.
'Our foot is down on the pedal of stimulus as far as we can possibly go,' Yellen told reporters after a speech in San Francisco.
Yellen earlier forecast a 'tepid' recovery for the United States. She told reporters that even if GDP growth reached 3 to 4 percent in the next few quarters, it would likely not make much of a dent in thinning the vast ranks of the jobless.
'If you think that the economy has the potential to grow at 2.5 percent, then you need GDP growth at that level just to tread water on the unemployment rate,' said Yellen.
(Reporting by Ros Krasny, Editing by Chizu Nomiyama) Keywords: USA FED/YELLEN RATES (Ros.Krasny@thomsonreuters.com; Tel: +1 312 408 8592; Reuters Messaging: ros.krasny.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'Our foot is down on the pedal of stimulus as far as we can possibly go,' Yellen told reporters after a speech in San Francisco.
Yellen earlier forecast a 'tepid' recovery for the United States. She told reporters that even if GDP growth reached 3 to 4 percent in the next few quarters, it would likely not make much of a dent in thinning the vast ranks of the jobless.
'If you think that the economy has the potential to grow at 2.5 percent, then you need GDP growth at that level just to tread water on the unemployment rate,' said Yellen.
(Reporting by Ros Krasny, Editing by Chizu Nomiyama) Keywords: USA FED/YELLEN RATES (Ros.Krasny@thomsonreuters.com; Tel: +1 312 408 8592; Reuters Messaging: ros.krasny.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.