Janet Yellen on economic outlook
By Dana Griffin
@DanaGriffinABC6
Yellen said, “I think it will be appropriate at some point this year to take the initial step to raise the federal funds rate target and begin the process of normalizing monetary policy.”
In this rare opportunity to hear from one of the world’s leading economists, it hit home for state leaders who like Yellen– a Brown University graduate– know just how hard the state is struggling to make an economic comeback.
Rep. David Cicilline said, “She’s one of those people who when she speaks, the entire world listens because her leadership has a direct impact on the health of our nation’s economy and really on the world’s economy so it’s an important day to have an opportunity to hear her.”
Yellen said although a hike could come later this year, she needs to first see improvement in labor market conditions.
“The various headwinds that are still restraining the economy as I said, will likely take some time to fully abate and the pace of that improvement is highly uncertain,” said Yellen.
After her speech, markets were little changed signaling that investors were paying attention to Yellen’s forecast.
Rep. Jim Langevin said, “Clearly her words seem to move markets.”
Governor Gina Raimondo charged every business person in the room to be the change the state needs.
“We have to streamline our regulations. We have to make it easier and cheaper to do business in
Chairwoman Yellen says the Federal Reserve is on track to raise short–term interest rates this year, but they’ll be proceeding cautiously since the job market hasn’t fully healed. It’ll be the first rate hike from the Fed since 2006.
Senator Reed who’s credited with getting Yellen to
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