Speaking in Washington
Yellen adds:
- market volatility reflects uncertainty on trade, rates
- worried by buildup in nonfinancial corporate debt
- not seeing financial trends that spell end of expansion
- Fed is trying to take its foot off the accelerator
- at least a couple more rate hikes necessary
- worried about the risk of an overheating economy
- labor market by any measure is very tight
- financial conditions still easy despite market correct
- inflation may pick up if labor market continues to tighten
- important that the Fed be forward looking
- 2019 growth could be bit slower but still above trend
- don't feel inflationary pressures building very rapidly
- don't love low growth but don't want overheating economy
Not going out on a limb with these comments (mostly in line with the current Fed) from the former Fed Chair.