Yellen not in a rush to raise rates

Per the NY Times:

WASHINGTON — Janet L. Yellen, the Federal Reserve chairwoman, said Tuesday that the Fed was pleased with recent economic growth, convinced there was plenty of room for improvement and in no hurry to start raising interest rates.

Patience remains the Fed’s watchword, Ms. Yellen said in testimony to the Senate Banking Committee Tuesday morning.

“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.”

Ms. Yellen’s testimony puts her on a collision course with Senate Republicans who worry the Fed is blowing bubbles in financial markets and losing control of inflation. Senator Richard Shelby, the Alabama Republican who just resumed chairmanship of the banking committee, made both points in his remarks.