Fed's Yellen Says Solid Economic Growth Means More Rate Hikes Ahead


The Fed is due to release a statement at the end of its latest two-day policy meeting at 2 p.m. EST (1900 GMT).

Outgoing Federal Reserve Bank Chair Janet Yellen said on Friday that solid economic growth, faster wage increases, and a tightening labor market mean the US central bank is likely to need to continue to raise interest rates gradually, as it has signaled it will.

She and her colleagues enacted programs and policies that have brought the economy and financial system back from the brink.

Yellen was an experienced Fed governor before taking the top job, but she wasn't tested by crisis like her predecessor, Ben Bernanke.

Janet Yellen, head of the US?Federal Reserve for the past four years, will join the Brookings Institution next week as a fellow in economic studies, the think tank said Friday.

Emphasizing the need for improved director oversight of the firm, the Board has sent letters to each current Wells Fargo board member confirming that the firm's board of directors, during the period of compliance breakdowns, did not meet supervisory expectations.

In a break from past practice, Trump opted not to nominate Yellen to a second four-year term. She was a Democrat, Obama hired her - and so she had to go. The unemployment rate has reached a 17-year low of 4.1 per cent with still-low inflation.

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Testimony began there Wednesday and the court was expected to hear statements from 35 more victims on Friday. Soccer player Erin Blayer said she starting seeing Nassar for excruciating back pain at age 12.

Inflation, though, has consistently fallen short of the Fed's 2 per cent objective during Yellen's tenure and stood at 1.7 per cent in December, according to the Fed's favourite price gauge.

The Dow Jones industrial average closed at 25,520 on Friday after a 665-point drop.

Janet Yellen leaves the with the economy clicking, the stock market humming and the central bank on a clear path away from the emergency policies it put into place to help rescue the US from the deep throes of the financial crisis.

"I've been in high-level positions in the Federal Reserve for many years", she said.

Transcripts of Fed policy meetings from the fall of 2008, when Lehman Brothers' collapse ignited the most risky phase of the financial crisis, show that Ms. Yellen helped drive the Fed to unleash just about everything in its economic arsenal, including slashing its key short-term interest rate to a record low near zero.

She also successfully led the central bank to withdraw from the quantitative easing program, gradually raised interest rates and winded down the Fed's huge balance sheet without triggering market turbulence.