Federal Reserve Chair Janet Yellen sought to reassure worried lawmakers on Thursday that when the Fed begins to raise interest rates, it will be careful not to derail the economy.
Delivering her second day of congressional testimony, Yellen responded to concerns from some Democratic senators that once the Fed does start raising rates, it could set back job market and income gains.
Both Sens. Robert Menendez, D-N.J., and Charles Schumer, D-N.Y., told Yellen that with inflation at such low levels now, it would be a mistake for the Fed to begin raising interest rates too quickly. The more prudent course, they said, would be to keep rates low and give the labor market more time to heal from the Great Recession...