Yellen: The current economic outlook and three big questions for the FOMC

Yellen: The current economic outlook and three big questions for the FOMC. Janet Yellen, Chair of the Federal Reserve, has delivered a speech at the Economic Club of New York outlining her view on the economy. Yellen addresses three questions she believes are likely to influence the FOMC's ongoing assessment of the economy and the path back to full employment and price stability. 1) Is there still significant slack in the labor market? 2) Is inflation moving back toward 2 percent? 3) What factors may push the recovery off track? Yellen says, It is a sign of how far the economy has come that a return to full employment is, for the first time since the crisis, in the medium-term outlooks of many forecasters. It is a reminder of how far we have to go, however, that this long-awaited outcome is projected to be more than two years away. (VIEW LINK)