Yellen left the United States continued interest rate hike disappointed unsuccessful nominations

Federal Reserve Chairman Yellen formally stepped down on February 3 local time. In her last media interview before taking office, she said she was disappointed that she had not been re-elected by President Trump. Yellen is satisfied with his own Fed presidency and expects the Federal Reserve will continue to raise interest rates. It is reported that after leaving office, Yellen will join the Washington think tank Brookings Institute as a researcher.

Satisfaction with the unemployment rate dropped significantly

In an interview with the PBS on the 2nd, Yellen said: “I am ready for another term, and I made it clear too. Therefore, I was disappointed by not having been re-elected.”

During his 10-minute visit, Yellen also mentioned that the Federal Reserve will continue to raise interest rates gradually in the future and the market may see a valuation adjustment. However, the financial system has become more powerful and flexible enough to cope with the impact.

Yellen said: “The U.S. economy is recovering and we can see steady growth. The Fed has embarked on a gradual rate hike. If the current situation continues (and is likely to continue), we can expect long-term interest rates Will rise. ”

In terms of payroll, before Yellen was interviewed by PBS, the U.S. Department of Labor released better-than-expected January non-farm payrolls data. Among them, the average hourly wage increased by 2.9%, the largest increase in 2009. Yellen said over time, she believes the labor market will tighten and the wage increase is expected to accelerate. “If we did not just look at this morning’s report (non-agricultural), we are seeing some gradual upward trends because it is very unstable and focuses on a series of news reports on wages.”

During Yellen’s four-year tenure, the unemployment rate in the United States dropped to 4.1% from 6.7% at the time of her assumption of office. In evaluating his own performance, Yellen said: “This is the lowest level in 17 years and I feel very good about the progress we have made.”

Refers to the resilience of the economy and financial system

Former Federal Reserve Chairman Greenspan said last week that both the US stock market and the bond market had a bubble. In this regard, Yellen said he did not want to fight the “bubble” tag, but asset valuation is generally rising.

Yellen referred to the stock market and real estate. She said: “For the stock market, P / E is near an all-time high and if we look at it, for example, commercial real estate and other assets, we can see a very high valuation.”

Yellen suggested diversifying investments, but she also mentioned that the economic and financial systems have shown some resilience against the impact of market valuation adjustments. “We have a banking system that is stronger, capitalized and more resilient than before the financial crisis.”

Yellen also said that asset valuations may change. Certainly not in the prediction of this situation, but we can not rule out this possibility. But the financial system is resilient enough to withstand shocks.