The Federal Reserve has not fallen behind the curve, Fed chair Janet Yellen said in response to a question Wednesday.
"I do not judge that we are behind the curve," she said, noting the outlook is uncertain and thoughts will have to be "adjusted" as time goes on based on the economy and economic policy.
The Federal Open Market Committee economic projections are "very similar" to September's and she termed the adjustment in the dot plot "modest." The changes in the dot plot were based on a "few participants" raising their projections. In response to a question, she said some participants may have "assumed a change in fiscal policy."
The quarter-point raise in the fed funds rate target would have only a small impact on market rates and households and shows "confidence in progress the economy has made and judgement it will continue."
