Yellen Says Economic Expansion Has Gained Strength
- 6 years ago
Yellen Says Economic Expansion Has Gained Strength
Fed officials have drawn a careful distinction between tax cuts
that increase economic capacity — for example, by encouraging business investment — and tax cuts that provide a short-term sugar high, such as cuts in personal income taxes that would likely increase spending.
We’re worried about trends that could push inflation above our 2 percent objective.”
Ms. Yellen also addressed questions about financial regulation, largely echoing Mr. Powell’s testimony at his confirmation hearing Tuesday.
“We continue to expect that gradual increases in the federal funds rate will
be appropriate to sustain a healthy labor market and stabilize inflation.”
Inflation remains below the Fed’s 2 percent annual target.
By Binyamin Appelbaum
WASHINGTON — Janet L. Yellen, the Federal Reserve chairwoman, said on Wednesday
that the country’s economic expansion had broadened and strengthened, and that she expected the growth to continue.
She said the Fed’s policymaking group, the Federal Open Market Committee, planned to continue
raising the benchmark interest rate, winding down its own efforts to stimulate faster growth.
Ms. Yellen’s upbeat assessment, delivered to the Joint Economic Committee, is likely to
reinforce expectations the Fed will raise its benchmark interest rate in mid-December.
Fed officials have drawn a careful distinction between tax cuts
that increase economic capacity — for example, by encouraging business investment — and tax cuts that provide a short-term sugar high, such as cuts in personal income taxes that would likely increase spending.
We’re worried about trends that could push inflation above our 2 percent objective.”
Ms. Yellen also addressed questions about financial regulation, largely echoing Mr. Powell’s testimony at his confirmation hearing Tuesday.
“We continue to expect that gradual increases in the federal funds rate will
be appropriate to sustain a healthy labor market and stabilize inflation.”
Inflation remains below the Fed’s 2 percent annual target.
By Binyamin Appelbaum
WASHINGTON — Janet L. Yellen, the Federal Reserve chairwoman, said on Wednesday
that the country’s economic expansion had broadened and strengthened, and that she expected the growth to continue.
She said the Fed’s policymaking group, the Federal Open Market Committee, planned to continue
raising the benchmark interest rate, winding down its own efforts to stimulate faster growth.
Ms. Yellen’s upbeat assessment, delivered to the Joint Economic Committee, is likely to
reinforce expectations the Fed will raise its benchmark interest rate in mid-December.