Economics
Yellen Says Premature to Conclude Inflation Trend Falling Short
- Fed chair sees ‘two-sided’ risks to the inflation outlook
- Repeats view a tightening labor market will lift wages, prices
Federal Reserve Chair Janet Yellen discusses U.S. inflation expectations during testimony before the Senate Banking Committee. (Source: Bloomberg)
This article is for subscribers only.
Federal Reserve Chair Janet Yellen said she had not yet concluded that recent weak readings on inflation were a sign that it would fail to rise to the Fed’s 2 percent target, and the U.S. central bank remained on track to continue raising interest rates at a gradual pace.
“It is premature to conclude the underlying inflation trend is falling well short of 2 percent,” Yellen told the Senate Banking Committee on Thursday in Washington. “I haven’t reached that conclusion.”