The U.S. economy still isn’t healthy enough to grow at a consistently strong pace without the Federal Reserve’s help.
That was the message Fed Chair Janet Yellen sent Wednesday at a news conference after the central bank ended a two-day policy meeting.
Yellen made clear that despite a steadily improving job market and signs of creeping inflation, the Fed sees no need to raise short-term interest rates from record lows anytime soon.
Her remarks followed a statement from the Fed that it would further slow the pace of its long-term bond purchases. The bond purchases have been intended to keep long-term loan rates low. But the Fed offered no clear signal about when it will start raising its benchmark short-term rate.
Most economists think a rate increase is at least a year away despite signs of rising inflation. At her news conference, Yellen downplayed inflation concerns.
Recent inflation figures are “noisy” she said.