Highlights of the opening statement from Fed Chair Janet Yellen

  • Changes in tax policy will likely provide some lift in growth, the magnitude and timing is uncertain
  • Household spending has picked up
  • Steady participation rate is a sign of improved labor market
  • We expect job market to remain strong
  • FOMC expects sustained job creation and rising wages
  • The pace of job gains will moderate over time as we reduce the degree of accommodation
  • Inflation softness reflects transitory developments
  • We are prepared to adjust monetary policy as needed
  • We still expect gradual rates to be warranted
  • This rate is still 'somewhat' below netural but would not have to rise much further to get to neutral
  • Additional likes likely appropriate 'over next few years'

From the presentation: