The American economy is developing steadily, showing signs of inflation, so the Fed maintains a further plans to increase the key rate, said Fed Chair Janet Yellen at New-York conference, defending her decision to tighten policy at the end of last year.
In the framework of discussions in New York, which were attended by three previous FED heads, Yellen said that seven years after the severe financial crisis, the US labor market is close to the peak of its development. She also said again that inflation won’t be held back for a long time by strong dollar and low oil prices.
“The US economy continues to recover at a satisfactory pace. We continue to see a good level of employment, some signs of inflation – those were our expectations when we raise rates in December,” – Yellen said in a speech in the building of public organization “International House”.
“Therefore – yes, our monetary policy is an element of adaptation, however, we think that the policy of gradual rate increase would be acceptable.”, – Said Yellen, noting that the Fed will continue to follow the “reasonable way”.
The Fed has raised rates in December, marking the first increase in nearly a decade. The range of rates was set at between 0.25 and 0.5 percent.
The subject of debates was also the US election campaign, in which Republican candidate Donald Trump has criticized the US regulator for the support of “bubbles” of assets.
“I definitely would not call the economy “bubble “,” – said Yellen, mentioning “healing” labor market, where current unemployment is 5 percents, i.e. approximately at the level the Fed seeks for.