Yellen foresees continued low borrowing rates
WASHINGTON (AP) — Federal Reserve Chair Janet Yellen says the U.S. economy is improving but notes that the job market remains "far from satisfactory" and inflation below the Fed's target rate.
Speaking to Congress' Joint Economic Committee, Yellen says she expects low borrowing rates will continue to be needed for a "considerable time."
Her comments echo Yellen's earlier signals that the Fed has no intention of acting anytime soon to raise its key target for short-term interest rates even though the job market has strengthened and economic growth is poised to rebound this year. The Fed has kept short-term rates at a record low near zero since December 2008.
At the same time, Yellen says geopolitical tensions, a renewal of financial stress in emerging markets and a faltering housing recovery are potential threats.