Yellen Says Waiting Too Long to Raise Rates Is Unwise

The committee decided to keep the federal funds rate unchanged but expects gradual increases as the economy evolves. They emphasize the importance of timely adjustments to avoid rapid rate hikes that could disrupt markets. Current data shows strengthening labor markets and rising inflation. The neutral federal funds rate is expected to rise over time, influenced by factors like productivity and global economic conditions. The economic outlook remains uncertain, and monetary policy will adapt to changes. Fiscal policy changes could impact growth, and improving productivity is crucial for long-term economic health.

How does the committee view the economic outlook and monetary policy?

What is the importance of improving productivity according to the speaker?