U.S. Federal Reserve Chair Janet Yellen holds a news conference following day two of the Federal Open Market Committee (FOMC) meeting in Washington, U.S., Dec 14, 2016. Photo: REUTERS/File Photo

Washington (People’s Daily) – Federal Reserve Chair Janet Yellen remained optimistic about the future US economy as today marked her last day as the head of the central bank. 

Last week, the 71-year old Yellen, announced she would step down after almost four years from a position that normally requires 14 years of service.

“The economic expansion is increasingly broad-based across sectors as well as across much of the global economy,” Yellen said Wednesday morning.

Yellen released an official statement prior to her Joint Congress meeting, touching on the current economic outlook and monetary policy, offering positive insight and knowledge.

During her final appearance before US Congress’ Joint Economic Committee, Yellen suggested raising interest rates to safeguard against an economy to prevent overheating.

Yellen said structural factors will also require attention, suggesting that new policies emerge to promote spending, education reform and investing.

"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 and added, "In this regard, 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.”

US investors anticipate a rate hike by December, but Yellen remained calm, stressing that "gradual increases" in the Fed's benchmark rate will be sufficient as economic recovery will still be in place.  But minutes from her last meeting revealed “many participants” felt a rate increase would be justified “in the near term.” 

"I expect that, with gradual adjustments in the stance of monetary policy, the economy will continue to expand, and the job market will strengthen somewhat further, supporting faster growth in wages and incomes,” continued Yellen.

After Yellen announced she would be stepping down, President Trump announced that Fed board member Jerome Powell had received his nomination to succeed Yellen in February 2018.