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Federal Reserve Board Chair Janet Yellen thinks the economy is not too hot, not too cold, but it's not just right either. In prepared remarks ahead of semi-annual testimony to Congress, Yellen said the economy is improving, but the recovery still has a ways to go. She also said there were signs of a spending and production rebound in the second quarter, after a dismal first quarter blamed on the terrible winter, but "this bears close watching." The Fed chief also said housing activity has been disappointing and the sector has shown sluggish progress recently. With the job market still hobbled and wages stagnant, Yellen said the Fed would continue to keep interest rates at historic lows. "Too many Americans remain unemployed," she said. Signs of higher inflation aren't enough, she said, for the Fed to speed up its plans to raise rates, currently expected mid-2015.

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-- By NBC News Staff, CNBC's Jeff Cox and Reuters