Yellen: No hurry to raise rates

WASHINGTON — Janet Yellen, the Federal Reserve chairwoman, told Congress on Tuesday that the Fed was pleased with recent economic growth, convinced there was room for improvement and still pondering when to start raising interest rates. In testimony before the Senate Banking Committee, Yellen advanced the Fed’s slow-motion progress toward raising its benchmark interest rate, describing for the first time how the central bank plans to signal that the moment is approaching.

But she said that patience remained the central bank’s watchword.

“There has been important progress,” she said. “However, despite this improvement, too many Americans remain unemployed or underemployed, wage growth is still sluggish and inflation remains well below our longer-run objective.”

Yellen’s careful performance reflected the Fed’s desire to delay decisions as it seeks greater clarity about the health of the economy. In response she drew gentle prodding from some Republicans concerned the Fed will move too slowly, and from some Democrats who have the opposite concern.

— From wire reports