Yellen testimony: Important to gradually move policy toward neutral level

Following her prepared speech, Federal Reserve Chair Janet Yellen is responding to questions from the members of the Joint Economic Committee, with key quotes, via Reuters, found below.

Fall in jobless rate is desirable.

Encouraged that firms are focusing more on training.

Fed is not seeing undue inflationary pressure in labor market.

Important to gradually move policy toward neutral level

Want to avoid rapidly raising rates and causing recession.

If inflation is depressed on temporary basis as she believes, gradual path toward neutral stance appropriate.

Have seen modest upward pressure on wages.

Wage increases are modest.

Lesson from modest wages is that labor market and economy are not overheated.

Productivity growth has been dismally slow in recent years.

Key notes

US Dollar wobbling around 93.30.

The greenback, in terms of the US Dollar Index (DXY), has faded the earlier spike to the upper end of the range in the 93.40/50 band.

US GDP increased at an annual rate of 3.3 percent in third quarter of 2017.

"Real gross domestic product (GDP) increased at an annual rate of 3.3 percent in the third quarter of 2017, according to the "second" estimate," the Bureau of Economic Analysis reported on Wednesday.

About Janet Yellen

Janet L. Yellen took office as Chair of the Board of Governors of the Federal Reserve System on February 3, 2014, for a four-year term ending February 3, 2018. Dr. Yellen also serves as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body.