Yellen Says Economic Expansion Has Gained Strength<br />Fed officials have drawn a careful distinction between tax cuts<br />that increase economic capacity — for example, by encouraging business investment — and tax cuts that provide a short-term sugar high, such as cuts in personal income taxes that would likely increase spending.<br />We’re worried about trends that could push inflation above our 2 percent objective.”<br />Ms. Yellen also addressed questions about financial regulation, largely echoing Mr. Powell’s testimony at his confirmation hearing Tuesday.<br />“We continue to expect that gradual increases in the federal funds rate will<br />be appropriate to sustain a healthy labor market and stabilize inflation.”<br />Inflation remains below the Fed’s 2 percent annual target.<br />By Binyamin Appelbaum<br />WASHINGTON — Janet L. Yellen, the Federal Reserve chairwoman, said on Wednesday<br />that the country’s economic expansion had broadened and strengthened, and that she expected the growth to continue.<br />She said the Fed’s policymaking group, the Federal Open Market Committee, planned to continue<br />raising the benchmark interest rate, winding down its own efforts to stimulate faster growth.<br />Ms. Yellen’s upbeat assessment, delivered to the Joint Economic Committee, is likely to<br />reinforce expectations the Fed will raise its benchmark interest rate in mid-December.
