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Wednesday, May 07, 2014

Fed Chair Janet Yellen: Expects Growth Rate to Increase, "A high degree of monetary accommodation remains warranted"

by Calculated Risk on 5/07/2014 10:05:00 AM

Testimony by Chair Yellen on the economic outlook. A couple of excerpts:

Looking ahead, I expect that economic activity will expand at a somewhat faster pace this year than it did last year, that the unemployment rate will continue to decline gradually, and that inflation will begin to move up toward 2 percent. A faster rate of economic growth this year should be supported by reduced restraint from changes in fiscal policy, gains in household net worth from increases in home prices and equity values, a firming in foreign economic growth, and further improvements in household and business confidence as the economy continues to strengthen. Moreover, U.S. financial conditions remain supportive of growth in economic activity and employment.
emphasis added
And on monetary policy:
As always, our policy will continue to be guided by the evolving economic and financial situation, and we will adjust the stance of policy appropriately to take account of changes in the economic outlook. In light of the considerable degree of slack that remains in labor markets and the continuation of inflation below the Committee's 2 percent objective, a high degree of monetary accommodation remains warranted.