Yellen’s Strong Performance Bodes Well for U.S. Economy

The markets applauded Janet Yellen’s report to Congress earlier this week, with stocks, in particular, gaining back a good part of what they had lost since the beginning of 2014. This enthusiasm seems fully justified, as the new Federal Reserve Chair painted an accurate and optimistic picture of both the U.S. economy, which continues to gain strength, and of Fed policy, which is slowly but surely on track to return to normal as the need for extraordinary measures subsides. In her prepared remarks, Chairwoman Yellen made special note of recently released data that join with others I have written about previously to suggest that the U.S. economy entered the New Year with considerable forward momentum.