Economics
Yellen Says Economy Near Goals Warrants Gradual Rate Hikes
- ‘I and most of my colleagues’ expecting a few hikes a year
- Fed chair says timing of next rate increase depends on economy
Fed Chair Janet Yellen on Productivity Slowdown
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Federal Reserve Chair Janet Yellen said the U.S. economy is “close” to the central bank’s objectives of full employment and stable prices and she’s confident it will continue to improve.
“It is fair to say the economy is near maximum employment and inflation is moving toward our goal,” Yellen told the Commonwealth Club in San Francisco Wednesday. While “it makes sense to gradually reduce the level of monetary policy support,” the timing of the next interest-rate increase “will depend on how the economy actually evolves over coming months,” she said.