Most Important Two Minutes of Yellen's Statement

The video discusses the federal funds rate, noting weak economic growth and business investment. It highlights slowed household spending and labor market improvements, with job gains averaging 80,000 per month. Despite this, wage growth shows signs of picking up. The video anticipates gradual increases in the federal funds rate, remaining below long-term levels due to economic headwinds like global developments and low productivity growth. If these headwinds fade, interest rates may rise to maintain economic stability.

What factors contributed to the relatively weak economic growth late last year and early this year?

How did household spending and income trends affect the economy in the early part of the year?

What does the average hourly earnings increase indicate about wage growth?

What are the expected trends for the federal funds rate in relation to economic conditions?

What headwinds are currently affecting the economy, and how might they change in the future?