Fed Chief Remains Optimistic About Continued Economic Growth

(Washington, DC) -- Federal Reserve chief Janet Yellen remains optimistic about continued economic growth but says unemployment is still too high. The Fed announced today that it is keeping interest rates near zero and will further reduce asset stimulus measures another ten billion dollars a month. Yellen called it a modest reduction. Yellen noted that the Fed is scaling back earlier forecasts on the pace of economic growth.
Yellen told a news briefing that the labor market continues to be underutilized. She also expressed concerns about the longterm unemployed, saying it is harder for people to find jobs the longer they are out of work. Yellen said inflation continues to be relatively low and stressed that the Fed will be keeping a close watch on it. She explained, inflation that is too low can be just as dangerous to the economy as high inflation.