Janet Yellen looked back on her year at the Federal Reserve as well as figured most of the boxes are checked: Accelerating economic growth, a solid employment picture as well as a stable financial system.
The one job left undone? Inflation.
At her final news conference as Fed chair Wednesday, Yellen said the Fed’s failure to bring inflation up to the central bank’s 2 percent mandate is actually her single disappointment.
“We have a 2 percent symmetric inflation objective. For many years at which point, inflation has been running under 2 percent, as well as I consider which an important priority to make sure which inflation doesn’t chronically undershoot our 2 percent objective,” she said.
Outside of which, Yellen said she feels comfortable with her term as chair, which will end in February when Fed Governor Jerome Powell takes over.
She leaves with the unemployment rate at 4.1 percent as well as trending lower, the economy shooting toward a 3 percent growth rate as well as banks far better capitalized than they were when the financial system melted down in 2007 as well as 2008.
“At the moment, the U.S. economy is actually performing well. The growth which we’re seeing is actually not based on, for example, an unsustainable buildup of debt as we had inside the runup to the financial crisis,” Yellen said. “The global economy is actually doing well; we’re in a synchronized expansion. which is actually the very first time in many years which we have seen which.”
Yellen said she has some concern about the values inside the stock market yet doesn’t believe the continued surge is actually a major problem. as well as she repeated worries which she has about the continued growth in public debt, at which point at more than $20 trillion.
yet she is actually heartened especially by the strong labor market.
“I feel Great about the economy outlook,” she said. “I feel Great which the labor market is actually in a very much stronger place than which was eight years ago. We’ve created 17 million jobs, we’ve got a Great, strong labor market as well as a very low unemployment rate. which’s been tremendously important to the well-being of American households as well as workers.”
Overall, Yellen said she walks away by the Fed with pride. She will not stay on after Powell is actually sworn in, even though her term as governor runs until 2024.
She called her time at the Fed “an immensely rewarding experience for me. I feel very positive about what we’ve been able to accomplish as well as feel tremendous loyalty to the institution. I did make the judgment which which is actually the right time for me to leave. yet I feel which I have served in senior positions at the Fed for a long time as well as which’s truly been an honor as well as privilege to possess the chance to do so.”