Investing.com - Federal Reserve Chair Janet Yellen said Wednesday that the U.S. economy will rebound in the second quarter as the effects of the harsh winter on growth peter out.
"With the harsh winter behind us, many recent indicators suggest that a rebound in spending and production is already under way, putting the overall economy on track for solid growth in the current quarter," Yellen said in remarks prepared for the Joint Economic Committee of Congress.
Yellen said she expects growth will expand at a "somewhat faster pace" this year than the 1.9% growth rate seen in 2013. She added that labor market conditions have improved but remain far from satisfactory.
Yellen reiterated that a high degree of monetary accommodation remains warranted given the slack in the economy.
Following Yellen's comments, the U.S. dollar was modestly higher against the euro, with EUR/USD easing down 0.04% to trade at 1.3922.
Meanwhile, U.S. stock markets were lower. The Dow shed 0.1%, S&P 500 lost 0.3%, while the Nasdaq 100 tumbled 1.2%.
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