Prospects for the US economy remain highly uncertain amid potential policy changes under Donald Trump’s incoming administration, Federal Reserve Chairman Janet Yellen said at a news conference, Sputnik reported.
The FOMC on Wednesday updated its forecast for US economic growth in 2016 to 1.9 percent, up from the 1.8 percent figure it predicted in September. For 2017, the FOMC now expects a 2.1 percent rise in gross domestic product, up from its previous 2 percent forecast.
"Of course the economic outlook is highly uncertain," Yellen told reporters Wednesday.
"Changes in fiscal policy or other economic policies could potentially affect the economic outlook."
The central bank chief said Federal Reserve staff members have been in contact with Trump’s transition team.
"We of course share the objective…to work constructively to ensure a smooth transition," she added. The central bank’s policy-setting Federal Open Market Committee (FOMC) members recognize there is "considerable uncertainty" about how Trump administration economic policies could affect the economy, Yellen explained.
"We are operating under a cloud of uncertainty at the moment, and we have time to wait to see what changes occur and to factor those into our decision-making as we gain greater clarity," she said.