WASHINGTON — Janet L. Yellen, the Federal Reserve chairwoman, said Tuesday that the Fed was pleased with recent economic growth, convinced there was plenty of room for improvement and in no hurry to start raising interest rates.
Patience remains the Fed’s watchword, Ms. Yellen said in testimony to the Senate Banking Committee Tuesday morning.
“There has been important progress,” she said. “However, despite this improvement, too many Americans remain unemployed or underemployed, wage growth is still sluggish and inflation remains well below our longer-run objective.”
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“If economic conditions continue to improve, as the committee anticipates, the committee will at some point begin considering an increase in the target range for the federal funds rate on a meeting-by-meeting basis,” Ms. Yellen added.
The Fed will change the wording of the statement when that happens, she said, adding that the eventual move to a shorter decision-making horizon should still not be taken to indicate that the Fed would then move quickly to raise rates.
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