Yellen warns on growing inequality

17 October 2014 Last updated at 20:04 Some worried that the speech could be seen as tilting more Democratic, thus angering Republicans US Federal Reserve chair Janet Yellen said that she was “greatly concerned” about rising inequality in the US.

“I think it is appropriate to ask whether [growing inequality] is compatible with values rooted in our nation’s history,” she said in a speech in Boston on Friday.

Some worried the speech politicised the Fed in favour of Democrats.

President Barack Obama has highlighted inequality in recent speeches on the state of the US economy.

Ms Yellen has made efforts since taking over as head of the central bank in January to focus more on issues beyond the basic rate-setting role of the Fed.

‘Great Gatsby Curve’

“The past several decades have seen the most sustained rise in inequality since the 19th century after more than 40 years of narrowing inequality following the Great Depression,” she said, noting that while some degree of inequality is to be expected, the recent widening concerns her.

Ms Yellen cited the “Great Gatsby Curve”, which has found that “among advanced economies, greater income inequality is associated with diminished intergenerational mobility”.

To combat this trend, Ms Yellen advised focusing on four issues: affordable higher education, inheritance policy, business ownership and help for children.

However, she did not tie any of these policies to those of the Fed, which is unusual for a central bank official.

The Fed is set to hold a two-day meeting of its rate-setting committee on 28-29 October.

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Yellen warns on growing inequality

PM says region has collective wisdom to overcome poverty, inequality

BY ATHALIAH REYNOLDS-BAKER

Thursday, January 30, 2014    

HAVANA, CUBA — Prime Minister Portia Simpson Miller says the region has the collective wisdom to overcome the pressing developmental challenges of poverty, hunger and inequality.

“We should not underestimate the full potential of our region. Latin America and the Caribbean represent a market of 600 million people; we have a combined Gross Domestic Product (GDP) of almost US$6 trillion that offers opportunities for countries in trade, investment and other areas,” she noted.

Simpson Miller was speaking Tuesday at the first plenary session of the Second Summit of the Community of Latin American and Caribbean States (CELAC) .

She said that the fight against hunger and poverty requires an integrated, transformational approach, encompassing areas such as technology exchange; research expertise, including regional air and sea connectivity; development of infrastructure; integration among CELAC members, and information sharing.

According to the prime minister, developing countries can also benefit from lessons learned and from the exchange of experiences with other countries, where beneficial schemes have been implemented to empower the poor.

“We must grasp the opportunities within the region to make our economies more secure and increase our resilience to external shocks,” she said.

Simpson Miller also called on her CELAC counterparts not to be daunted by the many challenges they face, pointing out that the community is a tangible demonstration of the region’s growing maturity and confidence.

She noted that in spite of slow GDP growth in the region, there has been some level of progress in reducing hunger by almost 25 per cent over the decade ending in 2012, and suggested that this progress must be bolstered with increased cooperation among the region’s economies.

“Let us work even more closely together for the advancement of our people. We must tackle the structural challenges in our economies and address the vulnerabilities which constrain our prospects for growth,” Simpson Miller said.

“The long-term socio-economic growth of our region requires closer links and cooperation among our countries as well as the strengthening of our collective resolve to achieve sustainable development,” she added.

A total of 33 heads of state and Government were in Havana for the CELAC Summit to engage in talks on a number of issues,

including intra-regional trade, sustainable development, science and technology, climate change, natural disasters, transportation, and social development.

The prime minister was scheduled to return to the island yesterday.

— JIS

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PM says region has collective wisdom to overcome poverty, inequality