In a speech Wednesday, Fed chair Janet Yellen stated the economy has been improving in recent weeks.
“On balance, both economic and financial information received since our October meeting has been consistent with our expectations of continued improvement in the labor market,” said Yellen. However, she stressed that the Fed will move slowly and cautiously in 2016. “The two main factors holding the U.S. economy back are the weak global economy, in China and the strong U.S. dollar, which affects American exports.”
Janet Yellen also emphasized how far the economy has come since unemployment peaked at 10% in October 2009. Now unemployment is down to 5%, which is “near normal.”
“A Fed rate hike in December–or soon thereafter–“will be a testament..to how far our economy has come in recovering from the effects of the financial crisis and the Great Recession, she concluded.