FRB Shifts Focus to Holding Growth Gains

Federal Reserve (FRB) Chairwoman Janet Yellen said the U.S. central bank's task has shifted from a post-crisis exercise of healing the economy to one aimed at holding on to progress made, according to Bloomberg.

"Before, we had to press down on the gas pedal trying to give the economy all of the oomph that we possibly could," Yellen said on Monday. The FRB is now trying to "give it some gas, but not so much that we're pushing down hard on the accelerator."

The FRB is aiming to ease back significantly this year on the level of support that it is providing the U.S. economy as it nears its goals of full employment and 2 percent inflation. Two additional rate hikes are expected this year as well as a shrinking of the central bank's $4.5 trillion balance sheet, gradually reversing emergency bond purchases made during the recession and recovery, Bloomberg explains.

Yellen expects the economy to continue to grow at a moderate pace and that gradual interest-rate increases "can get us where we need to be."

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