"To generate a sustained boost in economic growth without causing inflation that is too high, we will need to address these underlying causes," Yellen said, according to prepared remarks she will deliver to a joint congressional panel. "In this regard, the Congress might consider policies that encourage business investment and capital formation, improve the nation's infrastructure, raise the quality of our educational system, and support innovation and the adoption of new technologies," she added.
As for monetary policy, the Yellen Fed has begun normalizing the highly accommodative measures it took to boost the economy. The Fed has approved four interest rate hikes since December 2015 and begun to reduce its $4.5 trillion balance sheet. Yellen said "gradual increases" in the Fed's benchmark rate will be appropriate as the economy continues to recover. Despite her comments about the slow growth, she said the economy "appears to have stepped up" in recent days.
