Yellen Says Economy on Track For Solid Growth This Quarter

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The economy is on track for solid growth this quarter after recent weakness that was mostly weather-related, Fed chair Janet Yellen said on Wednesday.

May 7, 2014, 10:10 AM EDT / Source: CNBC

The economy is on track for solid growth this quarter after recent weakness that was mostly weather-related, Federal Reserve chair Janet Yellen said on Wednesday.

Many recent indicators suggest a rebound in spending and production, Yellen said in prepared remarks for a joint Congressional committee.

Fed chief Janet Yellen says the economy is on track for solid growth this quarter, but warned that a deterioration in housing or financial markets could alter that scenario. — Federal Reserve Chair Janet Yellen testifies at the Joint Economic Committee of Congress on Capitol Hill on Wednesday. She said the economy is on track for solid growth this quarter, but warned that a deterioration in housing or financial markets could alter that scenario.Charles Dharapak / AP

Economists now broadly expect the economy to have contracted in the first quarter, though they also project a strong snapback in the current quarter.

At the same time, Yellen cautioned that housing activity has remained disappointing and that the labor market is still far from satisfactory.

A "high degree of monetary accommodation remains warranted," Yellen said, adding that current interest rate targets would remain low for a "considerable time."

Last month the Fed reduced its monthly bond purchases to $45 billion from $55 billion

- CNBC Staff

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