Shanghai, 7 January 2019 – Speaking today at the opening plenary session "From quantitative easing to quantitative tightening" of the 19th UBS Greater China Conference (GCC), Dr. Janet L Yellen, Chair of the Board of Governors of the US Federal Reserve System (2014-2018) said she expects the Fed to take a pause from rate hikes.

"It makes sense to call a timeout to evaluate policy." She also noted that the labor market was tight and getting tighter. "I would anticipate that one or two rate hikes could be needed to stop the U.S. economy overheating," Dr. Yellen said.

Dr. Yellen was speaking on a panel at the 19th UBS Greater China Conference in Shanghai today, alongside the former Governor of the People's Bank of China, Dr. Zhou Xiaochuan, who told investors that he expects China to pursue "more proactive fiscal and monetary policies in these circumstances."

"We still have room for quantitative adjustment for monetary policy," Dr. Zhou said, "Monetary policy will continue to support economic growth, job creation and investment on the basis of stabilizing prices. We hope to see better cooperation between fiscal policy and monetary policy. China is going in a good direction for a better exchange rate policy."

Chairman of the UBS board of directors, Dr. Axel Weber joined in the discussion: "The European Central Bank is clearly in a wait-and-see mode. The amount of uncertainty and volatility is a factor monetary policy has to look at. Uncertainty per se has been at a record low. Uncertainty has normalised as monetary policy has normalised."

The UBS Greater China Conference, which runs from 7 to 11 January in Shanghai, attracted more than 1800 institutional investors and 230 China-focused companies and funds.

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