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>> The Feds, Janet Yellen delivering her final public remarks as Chairwoman, Wednesday. After President Trump broke tradition last month with his nomination of Jerome Powell to be next head of the Federal Reserve.>> Over the next month and a half I will do my utmost to ensure a smooth transition to my designated successor, J Powell.
>> Reuters Markets editor Dan Burns.>> So she's leaving an economy that is growing, and in fact the Fed upped its assessment of economic growth going ahead. So Jerome Powell, as he takes over the Fed early next year, does inherit a far stronger economy then either of its two predecessors.
Clearly stronger than the kind of economy that Ben Bernanke inherited. And when Yellen took over four years ago the economy, while growing, was really struggling to retain a really firm footing. And we're finally beginning to see some signs of fairly robust growth.>> The Fed did raise interest rates at its last policy meeting of the year, marking a victory for the Central Bank, roughly ten years after the 2008 financial crisis.
>> It is a sign of confidence, they did modestly increase their projections for economic growth over the next couple of years, and they see the unemployment rate dropping below 4%. So clearly there's a lot of confidence they have in the economy, at least in the short term. She was asked repeatedly about the approaching tax cuts that Congress is considering, and they don't see a lasting tailwind from these tax cuts.
You could almost say, she wouldn't say this explicitly, but the projections suggest that the Fed see the tax cuts as providing a little bit of a sugar high in the near term. But growth comes back down to earth in pretty short order in the next couple of years.
>> It's been an immensely rewarding experience for me.>> Wherever the US economy goes next will be on Powell's watch, he takes over in February.>> To adjust our policies in response to economic developments.