Yellen: Growth is 'quite disappointing' — but that's not the Fed's fault

Yellen: Growth is ‘quite disappointing’ — but that’s not the Fed’s fault

International News

Federal Reserve Chair Janet Yellen acknowledged that the economy is weak, but said Fed policies have been a help, not a hindrance. Since the central bank enacted historically accommodative policies following the 2008 financial crisis, the U.S. actually has grown faster than most other parts of the world and has a strong banking system, she said. “The economy has recovered more quickly, for example, than … European Union economies have in the aftermath of the crisis,” Yellen said during her second day of congressional testimony Wednesday. “The Federal Reserve has put in place highly accommodative monetary policies meant to spur spending in the economy and restore low unemployment or to achieve the goal of maximizing employment and price stability as assigned to us by Congress.” “I believe we’re coming very close to achieving those objectives, and monetary policy remains accommodative,” she added. Yet overall growth remains weak, with the economy failing to break 3 percent for any single year during the recovery. Though the U.S. has added about 16 million jobs since the 2010 peak in unemployment, wage gains have been meager and paychecks in inflation-adjusted terms actually are lower than they were pre-crisis. “Economic growth has been quite disappointing,” she said.