[video] Quick Take: Yellen's Challenge on Corporate Earnings
NEW YORK (TheStreet) -- Janet Yellen has her work cut out for her. The nominee for head of the Federal Reserve will take over the central bank at a time that is extremely different than most others have faced, said TheStreet's Joe Deaux.
Brian Barnier of ValueBridge Advisors agreed, saying Yellen will have to guide, lead and encourage her colleagues on key issues such as unemployment. However, there's been a problem with the corporate earnings reports: Companies can't seem to grow sales but have been producing record profits, he said.
Since 1995, the trend for revenue is far above its average and that disconnect between earnings and revenue is incredibly wide, he added. It shows that more companies are putting higher workloads on employees as jobs are slashed, while also relying more heavily on part-time workers.
When asked if there was anything the Fed could do, Barnier concluded that it depends on how it looks at unemployment and if it will make any structural changes to the way true employment is viewed.-- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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