The remarks by Janet Yellen, Federal Reserve Governor, were as follows:
- A gradual approach to rate hikes is appropriate in the light of subdued inflation.
- It would be unwise to leave interest rates unchanged until inflation reaches 2%.
- The Federal Reserve is still able to meet the inflation target of 2% even though the estimates of inflation expectations have been underestimated or overestimated.
- The downward pressure on inflation could be unexpected persistent.
- There is high probability that inflation may not stabilize at 2% over the next few years.
- I suggest labor market is healthy, without being too lack but not overheated.
- Evidence of an improved labor market is not definitive, must be open-minded.
- The FOMC should be wary of moving too gradually.
- It is not wise to keep the policy on hold until inflation reaches 2%.
- I see risks of overheating without a moderate hike over time.
- Inflation data can vary from month to month.
- I expect inflation to rise somewhat in the coming months.
- The labor market is getting better and stronger.
- The FOMC is not currently considering changing the inflation target.
- It would not be a tragedy if inflation overshoot.
- The Fed needs more monetary policy tightening but not an excessive amount.
