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. “The U.S. economy is doing well,” she said Tuesday, kicking off two days of testimony to Congress on the economic outlook and monetary policy. “My expectation is that the U.S. economy will continue to grow.” 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.