Fed Chair Janet Yellen warns of rising risks from the deficit just as lawmakers weigh a Republican tax cut plan that would exacerbate it. Fred Katayama reports.
Fed Chair Janet Yellen testified before the Joint Economic Committee on the U.S. economy. She warned of rising risks from the deficit just as lawmakers weigh a Republican tax cut plan that would exacerbate it. (SOUNDBITE) JANET YELLEN, FEDERAL RESERVE CHAIR, (ENGLISH) SAYING: "I'm very worried about the sustainability of the U.S. debt trajectory our current debt to GDP ratio of about 75 percent is not frightening, but it's also not low. But when you look at for example CBO's long term budget projections, it's the type of thing that should keep people awake at night." Yellen also said the economy has gathered steam this year, and it will warrant continued interest rate increases amid a strengthened global recovery. U.S. Bank's Eric Wiegand (SOUNDBITE) ERIC WIEGAND, SENIOR PORTFOLIO MANAGER, U.S. BANK (ENGLISH) SAYING: "Very much as anticipated, continue to profess the mantra that the Fed has been going with, talking about surprise that there hasn't been more evidence of inflation, particularly as far as wages are concerned. But, also, reflected, you know, that there isn't a lot of pent up risk in the system currently." It was Yellen's last appearance before Congress. Her term as Fed Chair expires in February. President Donald Trump nominated Fed Governor Jerome Powell to replace her.