Continued QE 'needed amid job market slack'

[WASHINGTON] US Federal Reserve Chair Janet Yellen told lawmakers the central bank must press on with monetary stimulus as "significant slack" remains in labour markets and inflation is still below the Fed's goal.

"A high degree of monetary policy accommodation remains appropriate," Ms Yellen said yesterday in semi-annual testimony prepared for delivery to the Senate Banking Committee. "Although the economy continues to improve, the recovery is not yet complete."

Ms Yellen cited labour-market weaknesses even after an unexpectedly fast decline in unemployment put pressure on Fed officials to consider accelerating their timetable for an interest-rate increase.