The US economy is proceeding as expected and the recovery continues, which is why waiting too long before raising the cost of money could be a risk. She said it Federal Reserve Chair Janet Yellen during his initial testimony before the Joint Economic Committee of the US Congress.
Her words consolidate the expectation of a rate hike during the meeting of 15 and 16 December. In this regard, Yellen explained that "monetary policy will remain accommodating after the first hike", which will be "a testament" to the recovery of the economy. His speech mostly retraces what he said yesterday at the Economic Club.
“I currently believe that economic growth is likely to be sufficient over the next couple of years to translate into further improvements in the labor market,” Yellen said, explaining that “expectations on the labor market, as well as expectations on inflation remain reasonably well anchored”, which suggests that inflation will return towards the 2% target set by the Fed.
