The pace of increases in labor compensation provides another possible indicator, albeit an imperfect one, of the degree of labor market slack. Janet Yellen Read Quote
Household spending growth has been particularly solid in 2015, with purchases of new motor vehicles especially strong. Job growth has bolstered household income, and lower energy prices have left consumers with more to spend on other goods and services. Janet Yellen Read Quote
A pickup in demand in many advanced economies and a stabilization in commodity prices should, in turn, boost the growth prospects of emerging market economies. Janet Yellen Read Quote
Stronger productivity growth would tend to raise the average level of interest rates and, therefore, would provide the Federal Reserve with greater scope to ease monetary policy in the event of a recession. Janet Yellen Read Quote
Financial market participants appear to recognize the FOMC’s data-dependent approach because incoming data surprises typically induce changes in market expectations about the likely future path of policy, resulting in movements in bond yields that act to buffer the economy from shocks. Janet Yellen Read Quote
To me, the greatest asset of the Fed is the people. We have a tremendously dedicated staff… They feel proud to work for the Fed because this is such a competent, professional and well-respected organization. Janet Yellen Read Quote
I will be the first to say that it is always difficult to get monetary policy just right. But the Fed’s analytical prowess is top-notch, and our forecasting record is second to none. Janet Yellen Read Quote
American workers have faced serious difficulties in the labor market since the first oil shock in 1973. Since that time, the pace of productivity advance has slowed for reasons which are still not understood, lowering the rate at which living standards have advanced. Janet Yellen Read Quote
The Federal Reserve’s monetary policy objective is to foster maximum employment and price stability. In this regard, a key challenge is to assess just how far the economy now stands from the attainment of its maximum employment goal. Janet Yellen Read Quote
