The U.S. has the strongest jobs market in nearly a decade thanks in part to accelerating wage growth and a low layoff rate, Federal Reserve Chair Janet Yellen said Monday.
In last week’s decision to raise rates, Fed officials indicated that full employment is getting closer, with the jobless rate currently at 4.6 percent. Job creation has been steady and job openings are up, she said, according to prepared remarks.
“The stance of monetary policy remains accommodative, thereby supporting some further strengthening in labor market conditions and a return to 2 percent inflation,” the statement said.
However, some of the challenges Yellen mentioned include “slow economic growth” and “disappointing productivity.”
In the Federal Open Market Committee’s statement last week, it said “economic activity has been expanding at a moderate pace since mid-year,” which was an upgrade from November’s assessment that growth had “picked up from the modest pace seen in the first half of this year.”
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