What You Need To Know From Fed Chief Janet Yellen’s Speech

Fed Chair Janet Yellen shares the central bank's latest thinking on interest rates, jobs and inflation. Both the FOMC's formal statement and Yellen in her remarks made it clear the timetable for rate hikes remains little changed. Most economists expect the Fed to begin raising its target funds rate in mid-2016. The Fed will soon stop buying Treasury bonds and mortgage backed securities to stimulate the economy, but it continued to say, as it did in previous meetings of the Federal Open Markets Committee, that it would leave its target Fed funds rate unchanged for a "considerable time" after that asset purchase program ends. Yellen also said inflation is not a problem. If anything, the FOMC would like to see a bit more of it. But, the Fed Chief did note that ongoing slack in the labor market continues to be a problem.

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