Yellen Says Economic Expansion Has Gained Strength

Yellen Says Economic Expansion Has Gained Strength


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Janet L. Yellen, the Federal Reserve chairwoman, testified before the Joint Economic Committee in Washington on Wednesday.

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Gabriella Demczuk for The New York Times

WASHINGTON — Janet L. Yellen, the Federal Reserve chairwoman, reported on Wednesday that the economic expansion had broadened and strengthened, and that she expected the growth to continue.

Ms. Yellen’s upbeat assessment, delivered in prepared testimony to a congressional committee, is likely to reinforce expectations that the Fed will raise its benchmark interest rate in December. It also raises questions about plans for a major tax cut aimed at stimulating growth.

“Economic growth appears to have stepped up from its subdued pace early in the year,” Ms. Yellen plans to tell the Joint Economic Committee. “Moreover, the economic expansion is increasingly broad based across sectors as well as across much of the global economy.”

The hearing on Wednesday morning may be Ms. Yellen’s last appearance before Congress in her current role. Her four-year term as the Fed chairwoman ends in early February, and she has said that she plans to leave as soon as her successor is sworn in. President Trump has nominated Jerome H. Powell, a Fed governor since 2012, to serve as the its next chairman.

Ms. Yellen was careful to say that the economy could be doing better. She noted that the pace of economic growth remained slow by historical standards. The two major determinants of growth, the number of workers and the productivity of the average worker, are rising slowly.

“In this regard,” she said, “the Congress might consider policies that encourage business investment and capital formation, improve the nation’s infrastructure, raise the quality of our educational system, and support innovation and the adoption of new technologies.”



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