US Federal Reserve Chairwoman, Janet Yellen, has told Congress’ Joint Economic Committee the US economy is improving. But she noted that the job market remains "far from satisfactory" and inflation is still below the Fed’s target rate.
Yellen said she expects low borrowing rates will continue to be needed for a "considerable time." Her comments echo earlier signals that the Fed has no intention of raising its key target for short-term interest rates any time soon. Yellen also cautioned that while conditions in the labor market had improved, the unemployment rate continues to be elevated. And a faltering housing recovery poses a potential threat to the country's economy.
"With the harsh winter behind us, many recent indicators suggest that a rebound in spending and production is already underway, putting the overall economy on track for solid growth in the current quarter. One cautionary note though is that readings on housing activity - a sector that has been recovering since 2011 - have remained disappointing so far this year, and will bear watching." Yellen said