The Federal Reserve lifted its benchmark interest Rate on Wednesday by a quarter point to a range of 1.25 to 1.5 percent, a widely expected move that the central bank said is happening because America's economy continues to improve.
"My colleagues sand I are in line with the general expectation among most economists that the type of tax changes that are likely to be enacted would tend to provide some Modest Lift to GDP growth in the coming years," Yellen said.
While the Fed anticipates wages are likely to rise faster next year, Yellen said, it would be mainly because unemployment is low and businesses are having trouble finding workers, not because of the tax plan.
With Trump's tax plan looking increasingly likely to pass Congress, growth is expected to pick up even more, putting pressure on the central bank to Raise rates faster.
“The [Fed] statement was as dull as it gets, which is likely what Janet Yellen exactly wanted as she passes on the job to Jerome Powell,” said Peter Boockvar, managing director of the Lindsey Group in Virginia.
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