Monetary Policy Report to Congress

Federal Reserve Board Chair Yellen has presented the Board’s semiannual Monetary Policy Report to the Congress. In remarks before the Senate Committee on Banking, Housing, and Urban Affairs, Dr. Yellen discussed the report along with the current economic situation and outlook. Yellen stated, “My colleagues on the FOMC and I expect the economy to continue to expand at a moderate pace, with the job market strengthening somewhat further and inflation gradually rising to 2 percent.” In regard to the monetary policy, the Chair noted, “the economic outlook is uncertain, and monetary policy is not on a preset course. FOMC participants will adjust their assessments of the appropriate path for the federal funds rate in response to changes to the economic outlook and associated risks as informed by incoming data. Also, changes in fiscal policy or other economic policies could potentially affect the economic outlook.”