U.S. Federal Reserve chairwoman, Janet Yellen, justified their decision to implement an interest hike.
The Federal Reserve held a press conference on Wednesday during which Yellen defended the highly anticipated decision of the Fed to raise interest rates in the United States of America. According to Yellen, the hike should send the message to American consumers that the economy is doing well.
"We have confidence in the robustness of the economy and its resilience to shocks. It's performed well over the last several years," said Yellen to reporters present at the press conference. "We've created since the trough in employment after the financial crisis, around 16 million jobs. The unemployment rate has moved way down. And many more people feel optimistic about their prospects in the labor market. There's job security."
The U.S. Federal Reserve raised the benchmark interest rate on Thursday. American interest rates have been raised three times since the financial crisis of the late 2000 aughts. The most recent hike was three months ago. Yellen and the Federal Reserve have estimated that there may be another two interest rate hikes to come in the next calendar year. The main message that Yellen pushed throughout the speech was her confidence the American economy.
"We're operating in an environment where the U.S. economy is performing well. And we seem pretty balanced. So, I think people can feel good about the economic outlook," said Yellen.