News / Economy

    Yellen Sees US Economy Accelerating in 2014

    Janet Yellen testifies on Capitol Hill, Washington, Nov. 14, 2013.
    Janet Yellen testifies on Capitol Hill, Washington, Nov. 14, 2013.
    VOA News
    Janet Yellen, who is set to take over as chief of the Federal Reserve next month, says she sees the American economy accelerating this year.
     
    Yellen told Time magazine: "I think we'll see stronger growth this year." She said policy makers at the powerful U.S. central bank are hopeful that the U.S. economy will grow by 3 percent or more in 2014.
     
    The U.S. economy advanced by 2.6 percent through the first nine months of last year, but recorded 4.1 percent growth in the July-to-September period. While economists say the fourth quarter advance may not have been as fast, the U.S. central bank says the country's economy continued to expand at a moderate pace in the last weeks of 2013.
     
    The 67-year-old Yellen will be the first woman to chair the Federal Reserve in its century-long existence, succeeding Ben Bernanke as his eight-year tenure expires at the end of January. As head of the central bank overseeing the world's largest economy, her views could play an important role in global economic circles.
     
    In the interview with Time, Yellen said the U.S. recovery from its steep recession in 2008 and 2009 "has been frustratingly slow." But she said the U.S. is "making progress in getting people back to work" and that the Fed expects that the country's inflation rate will edge higher toward the bank's 2 percent goal.
     
    Yellen's views about the advancing U.S. economy are shared by others, including James Glassman, the chief economist at JPMorgan Chase, the country's biggest bank. He told VOA he expects that as economic problems ease in Europe and in the U.S., the American economy will grow by 3-and-a-quarter percent or more this year and even faster next year.
     
    "The main thinking there is the European crisis is fading," he said. "Europe may not be growing that rapidly, but it is a distinct difference from last year. The housing problems in the U.S. seem to be behind us. And the fiscal sector, which has been pretty much of a drag for the last several years, seems as though that's beginning to settle down. So, a lot of reasons to think that 2014 should be a better year, a faster year of growth."
     
    Yellen defended the Federal Reserve's lengthy program to buy billions of dollars of securities to pump more money into the U.S. economy, purchases it is now starting to trim as the U.S. economy improves. Yellen noted that critics of the program say it "is just helping rich people," but she said the purchase of securities has helped hold down long-term interest rates and encouraged consumer spending.

    You May Like

    Video Obama Remembers Fallen Troops for Memorial Day

    President urges Americans this holiday weekend to 'take a moment and offer a silent word of prayer or public word of thanks' to country's veterans

    Upsurge of Migratory Traffic Across Sahara From West to North Africa

    A report by the International Organization for Migration finds more than 60,000 migrants have transited through the Agadez region of Niger between February and April

    UN Blocks Access to Journalist Advocacy Group

    United Nations has rejected bid from nonprofit journalist advocacy group that wanted 'consultative status,' ranking that would have given them greater access to UN meetings

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Chinese-Americans Heart Trump, Bucking National Trendi
    X
    May 27, 2016 5:57 AM
    A new study conducted by three Asian-American organizations shows there are three times as many Democrats as there are Republicans among Asian-American voters, and they favor Hillary Clinton over Donald Trump. But one group, called Chinese-Americans For Trump, is going against the tide and strongly supports the business tycoon. VOA’s Elizabeth Lee caught up with them at a Trump rally and reports from Anaheim, California.
    Video

    Video Chinese-Americans Heart Trump, Bucking National Trend

    A new study conducted by three Asian-American organizations shows there are three times as many Democrats as there are Republicans among Asian-American voters, and they favor Hillary Clinton over Donald Trump. But one group, called Chinese-Americans For Trump, is going against the tide and strongly supports the business tycoon. VOA’s Elizabeth Lee caught up with them at a Trump rally and reports from Anaheim, California.
    Video

    Video Reactions to Trump's Success Polarized Abroad

    What seemed impossible less than a year ago is now almost a certainty. New York real estate mogul Donald Trump has won the number of delegates needed to secure the Republican presidential nomination. The prospect has sparked as much controversy abroad as it has in the United States. Zlatica Hoke has more.
    Video

    Video Drawings by Children in Hiroshima Show Hope and Peace

    On Friday, President Barack Obama will visit Hiroshima, Japan, the first American president to do so while in office. In August 1945, the United States dropped an atomic bomb on the city to force Japan's surrender in World War II. Although their city lay in ruins, some Hiroshima schoolchildren drew pictures of hope and peace. The former students and their drawings are now part of a documentary called “Pictures from a Hiroshima Schoolyard.” VOA's Deborah Block has the story.
    Video

    Video Vietnamese Rapper Performs for Obama

    A prominent young Vietnamese artist told President Obama said she faced roadblocks as a woman rapper, and asked the president about government support for the arts. He asked her to rap, and he even offered to provide a base beat for her. Watch what happened.
    Video

    Video Roots Run Deep for Tunisia's Dwindling Jewish Community

    This week, hundreds of Jewish pilgrims are defying terrorist threats to celebrate an ancient religious festival on the Tunisian island of Djerba. The festivities cast a spotlight on North Africa's once-vibrant Jewish population that has all but died out in recent decades. Despite rising threats of militant Islam and the country's battered economy, one of the Arab world's last Jewish communities is staying put and nurturing a new generation. VOA’s Lisa Bryant reports.
    Video

    Video Meet Your New Co-Worker: The Robot

    Increasing numbers of robots are joining the workforce, as companies scale back and more processes become automated. The latest robots are flexible and collaborative, built to work alongside humans as opposed to replacing them. VOA’s Tina Trinh looks at the next generation of automated employees helping out their human colleagues.
    Video

    Video Wheelchair Technology in Tune With Times

    Technologies for the disabled, including wheelchair technology, are advancing just as quickly as everything else in the digital age. Two new advances in wheelchairs offer improved control and a more comfortable fit. VOA's George Putic reports.
    Video

    Video Baby Boxes Offer Safe Haven for Unwanted Children

    No one knows exactly how many babies are abandoned worldwide each year. The statistic is a difficult one to determine because it is illegal in most places. Therefore unwanted babies are often hidden and left to die. But as Erika Celeste reports from Woodburn, Indiana, a new program hopes to make surrendering infants safer for everyone.
    Video

    Video California Celebration Showcases Local Wines, Balloons

    Communities in the U.S. often hold festivals to show what makes them special. In California, for example, farmers near Fresno celebrate their figs and those around Gilmore showcase their garlic. Mike O'Sullivan reports that the wine-producing region of Temecula offers local vintages in an annual festival where rides on hot-air balloons add to the excitement.
    Video

    Video US Elementary School Offers Living Science Lessons

    Zero is not a good score on a test at school. But Discovery Elementary is proud of its “net zero” rating. Net zero describes a building in which the amount of energy provided by on-site renewable sources equals the amount of energy the building uses. As Faiza Elmasry tells us, the innovative features in the building turn the school into a teaching tool, where kids can't help but learn about science and sustainability. Faith Lapidus narrates.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.8954
    JPY
    USD
    109.65
    GBP
    USD
    0.6827
    CAD
    USD
    1.3037
    INR
    USD
    67.037

    Rates may not be current.