Yellen: Recession Unlikely, but Long-Run Growth Could Be Slow

Federal Reserve Chairwoman Janet Yellen said the chances of recession this year are “quite low” despite mounting worries that the U.S. could be heading toward a downturn after seven years of tepid economic expansion. Still, a clearly tentative Fed leader has a long list of factors she worries will hold growth to a modest pace in the months ahead. Output growth, hiring, business investment and corporate profits have stumbled or slowed in recent months, leaving the Fed unsure when it will raise short-term interest rates again. Fed officials next meet July 26-27. Ms. Yellen gave no indication that she expects to lift rates at that time. Instead, she stuck to a line that the Fed will raise rates gradually, cautiously and without a set timetable.