Janet Yellen, chairwoman of the Federal Reserve,
says the U.S. economy is improving but warned there was a possibility that the severe recession
caused persistent changes in the labor market′s functioning.
In a speech Friday that largely focused on the jobs market, Yellen said the economy had
made a great of progress in recovering from the largest and most sustained loss of employment
in the U.S. since the Great Depression. Mentioning there were encouraging signs, Yellen
said that it spoke to the depth of the damage that, five years after the end of the recession,
the labor market has yet to fully recover. The U.S. has added more than 200-thousand
jobs each month for six months in a row. The Fed chief said that despite the improvements
she wanted more evidence about the health of labor markets before deciding when to start
raising interest rates.