Fed’s Janet Yellen Says the Economy Remains in Good Health
Referring to the Fed’s benchmark rate, Ms. Yellen said, “We continue to expect
that the ongoing strength of the economy will warrant gradual increases in that rate to sustain a healthy labor market and stabilize inflation around our 2 percent longer-run objective.”
The Fed has raised its benchmark interest rate twice this year, in March and in June, to a range between 1 percent and 1.25 percent.
WASHINGTON — Janet L. Yellen, chairwoman of the Federal Reserve, said on Sunday
that the American economy was in good health in an upbeat assessment that reinforced expectations the Fed is planning to raise its benchmark interest rate later this year.
Job growth is strong, companies are increasing investment,
and the United States is benefiting from the improved health of the global economy, Ms. Yellen said in remarks to the Group of 30, which hosts gatherings of international policy makers and private-sector bankers.
Ms. Yellen also noted that domestic business investment has improved and stronger growth in other countries has increased demand for American exports
Ms. Yellen said the prospect of tax cuts or other changes in domestic fiscal policy has not influenced the Fed’s monetary policy plans at this point.
While wage growth remains weak by historical standards, Ms. Yellen said, that was mostly the result of slow growth in productivity.