Fed chair Yellen says she’s not planning an early exit

Posted on November 17, 2016

Federal Reserve chair Janet Yellen said on Thursday that she’s not going anywhere, despite sometimes withering criticism of her job performance from incoming US President-elect Donald Trump.

During her first public hearing since the November 8 election, Ms Yellen said she “cannot” imagine any scenario in which she would leave her post before her term expires in January 2018.

“It’s fully my intention to serve out that term,” she told US lawmakers.

Ms Yellen – who indicated in her prepared remarks that the Fed would not likely delay “for too long” its next interest-rate raise – said that the election results had not altered the committee’s economic outlook, despite Mr Trump’s unexpected victory.

Incoming economic data and developments since the Fed’s last meeting on November 2 “is consistent with the judgment the committee reached in November,” she said.

Ms Yellen also urged lawmakers to examine closely the effects that any future fiscal policy proposals might have on the pace of productivity growth, which she said has been a major disappointment even as other economic indicators improve.

Commenting on wage growth, Ms Yellen said that that wages had been impacted by technological change “that has favoured skilled workers and globalisation”.

She said that there has been “a loss of middle income jobs in the face of technological change and globalisation, that was probably accelerated in the aftermath of the financial crisis” and added that some of those that have found jobs are “taking large wage hits and we are seeing the frustration that comes with it”.

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