Yellen responds to audience questions:

  • Loose policy should only be ended gradually
  • Yellen says that headwinds
  • If she could only choose one employment indicator, she would choose the unemployment rate (but adds that she doesn't have to pick just one)
  • By some measures economy has already gone beyond maximum sustainable employment
  • Loose policy should only be ended gradually
  • Her own view is 'a little more slack' in employment than 5.3% unemployment shows
  • Slow wage growth consistent with notion of slack in labor market
  • Headwinds that have held back recovery are receding, but is happening gradually

Yellen July 10, 2015