Yellen says US unemployment is 'still too high'

(MENAFN- AFP) Janet Yellen, the nominee to lead the Federal Reserve, said Wednesday that US unemployment at 7.3 percent remains too high and reflects an economy running "far short"of its potential.

In remarks prepared for a Senate confirmation hearing Thursday, Yellen signaled her support for the central bank continuing its easy-money policies until the economy grows more robustly.

She also reiterated the stance of Fed policymakers that inflation is still very low and poses no threat to the economy.

"A strong recovery will ultimately enable the Fed to reduce its monetary accommodation and reliance on unconventional policy tools such as asset purchases," she said.

"I believe that supporting the recovery today is the surest path to returning to a more normal approach to monetary policy."